I don't think you will find any problems with the configuration of the seats. These pics might help you - http://www.airliners.net/photo/Air-N...9759360dfd1ab8

but essentially if you and your other half sit behind each other and your kids on the opposite side you will each be facing a child. The lie flat seats will be great for sleeping and your 5 year old will certainly be old enough to enjoy the in flight entertainment.

I'm sure you will have a great flight and the good old Kiwi hospitality will ensure you arrive with most of your hair!!