I have to second BIM's recommendation for teh Wyndham Palace Resort and Spa. It is right across the street from Downtown Disney. They have a free shuttle to all the parks, and it's a 5 minute walk to Pleasure Island, and all the other joys of DD. On top of that it's a FANTASTIC hotel, with beautiful grounds and great service. I spent $50 a night there due to my Priceline bid. They're even kind enough to remove the resort fee of $7 per night. Go to Sheryl's Priceline board for info on scoring this hotel. It's here:
http://pub4.ezboard.com/bpricelineandexpediabidding