All hotels on the Space Coast are booked for the night before the launch. Camping space is non existent also. If you spend the night in Orlando and drive over early (like 2-3 AM) you may be able to find a parking space at one of the public parks in Cocoa Beach and then go out on the beach until the launch occurs. The closest point on the coast anyone can get is at Jetty Park. Here is more information:

http://www.portcanaveral.com/recreation/beaches.php

Good Luck!