Disney

"First off get the unofficial guide to disneyworld--it will help answer your questions, along with the disney insider site online.

(1) We're very concerned about our budget - is it worth the extra money to stay "on site." Because this is peak season, the cheapest Disney resort hotel is $155/ night.

What’s nice about being onsite is that you can go early/stray late at certain parks on certain days and you have a speed pass to a bunch of rides that let you get to the froont of the line, both these things are especially important at a popular time like Xmas

(2) How inconvenient is parking if we opt to stay off site

Off site or on, you'll be taking a shuttle form wherever you are to Disney

(4) Any ways to avoid crowds at the park? For instance, is Disneyworld LESS crowded on Christmas Day than it may be the rest of the week? If so, should we aim to drive down as quickly as possible and then meander back home after?

I think on both the disney site and the unoofficial guide you can see which parks have an average of how many people on what days of the year—that should help. According to my book, the 19th-23 seem to be "low peak days" after that the park is at a Highest peak until after new years

(5) Does it make sense to purchase a park hopper? They seem much more
expensive - is it worth the difference in price?

Don't get the hopper--you have a 2 1/2 year old--2-3 days at the disney park will be more than enough. A lot of people go in either the am or afternoon and swim at the pool the other half of the day. I would recommed that if you don't want to stay at one park all day but would ratehr nto spend the extra $$ to hop parks--a kid that small will get really overstimulated and over timred otherwise.

(6) How many days would you recommend staying? We're not sure if we should plan on 2 or 3 days.

Either 2 or 3 days is perfect. It will be darker earlier that time of year so keep that in mind.

(7) Should we purchase the meal plan with our tickets?

If you do the hotel do the mealplan too--since your child is udner 3, she will eb eating off your plate so consider buffets where unticketed kids with adults eat free--the food is ok, but it's the conveninece factor and the chance to eat with the characters at soemplace like the Crystal palace that is the real reason to go the food plan route."