We've stayed at the Anaheim Hilton, Anaheim Marriott, the Holiday Inn, and the Hyatt Orange.
The nicest ones are the Anaheim Marriott and the Hyatt (get the kidsuite). The moderate one is the Holiday Inn.
The worst hotel was our most recent stay in March 2004 at the Anaheim Hilton. While the lobby is really nice, the rooms are NOT nice at all. The rooms are worn and weary, and the bathroom tiles are stained with grout on the walls and floor. The stains are so bad that we had to lay down towels on the floor to avoid stepping on it. The bathroom size is sooo small that you cannot maneuver properly in there, esp. if you have a small child to wash. Also, there is a vent above the bathtub that drips water all the time. We went to the front desk to complain about the room and perhaps to switch rooms, and the front desk told us that "all their rooms are like that." Luckily, we weren't at the hotel so much since we were at Disney all day. But we'll never stay at the Hilton again.
If you like the location of the Hilton, then try Anaheim Marriott, which is just across the street.