If the kids are stroller age but maybe those strollers will be rented at the parks, versus bring their own, I might suggest POFQ. Its the smallest of the mods, and the pool is the most little kid friendly. CSR's pool is wonderful but I think older kids will appreciate that one more. The serpent slide at POFQ is usually a winner with little kids. And since the resort is less spread out, its less walking for little legs. Its also picked up first and dropped off first when POFQ shares buses with POR.
Another option is CBR. Its spread out but the only mod that has preferred location (not to be confused with preferred view which the others have) rooms available for about an extra $15 a night. That way you will be close to the main area. And the CBR main pool is very kid friendly as well (although its being refurbbed the first half of 2008 so not sure what it will be like after that but I imagine it will be very nice). CBR also has the lake and lots of sand to play in (as does CSR). But I think the preferred location rooms make it very little kid friendly. CBR is my favorite of the mods because I love the tropical feel.
In the end, all four of the mods have a lot to offer and you cannot go wrong. Just be aware that at POR and CSR you can have some long walks. Very lovely walks but if you go with those, make sure they bring their strollers!