Staying onsite is a big convenience and adds to the entire Disney Experience.
I have never stayed at an Economy resort, but from what I understand they are smaller rooms and instead of queen size they have double beds, which can be a bit tight when sharing.
I have stayed at the Moderate & deluxes and the moderates are very nice. I've stayed at Caribbean Beach, Port Orleans, Dixie Landings (now part of Port Orleans) and Coronado Springs. I would have to say I liked Coronado Springs the best of all. I like the atmosphere - the food court and retaurant there are nice and the bus service to the parks was good.
In the deluxe resorts Wilderness Lodge and then Animal Kingdom seem to be lower in price than the others. But still they can be pricey. Chances are since this is your first trip you will be spending alot of time in the parks and seeing things and not as much at your hotel - if that's the case, there's no reason to spend more for the deluxe, but I would go with the moderate over the economy becasue it would probably be more comfortable for your family.
If you are a member of
AAA, I believe you can get discounts if you book through them. I'm not a memeber, but there are others on the boards who can give you the info.
If you have a
travel agent you work with alot, you can use them. For me, I usually book through Disney directly. You can go online and check out prices and availability for the dates you want, but when you're ready to book, I would call Disney directly. This way you can ask questions and get more information since it's your first time. Don't be afraid to ask if there are any discounts being offered.
If you have a Disney Credit Card, ask if there's any discounts if you use it. Sometimes the difference in leaving or arriving a day early or late can lower the price. I have found the Disney operators to be helpful and friendly.
Just a couple of notes when you book thru Disney - ask about the Dining Plan - you don't have to book it when you make your initial reservation, you can always add it on at a later date - or if you take it in the begininng - you can cancel it. Also, the last time I called reservations, they automatcially added on
trip insurance to my reservation. It's up to you if you want to take it - don't let them just assume you want it. If I remember you can cancel your reservation about 60 days out without any penelties. Ask them about. And again, you can always add or cancel the insurance prior to your final payment.
It can seem overwhelming, but the website is a good place to start. You can pick different hotels, different dates add different plans and compare prices. As far as the moderate hotels - all the rooms are basically the same in each resort - the difference is the decor and layout. With all moderates you enter your room from the outside. They all use the bus system to get around the parks (and though you have your car, if you plan to park hop and such, the buses will be much better) and they're all fairly large.
And one last note - once you make plan your trip and make youre reservation - I would suggest you make dining reservations in advance for any table-service meal you may want. You can book your reservations beginning 180 days from your arrival date. Without them, it may be very difficult to get into restaurants and if you do it could be along wait.
Good Luck and enjoy your first Disney Trip!