Where to Stay-We stayed on sight at the Williamsburg Woodlands. The hotel was fine and staff friendly. When making the reservations I was told I could only have a room with two queen size beds because of our package, but upon arrival we were upgraded to a suite. Breakfast is included. It's self serve, not anything to write home about, but the kids thought it was great and that's all that matters. You will have to look somewhere else for a decent cup of coffee. They are next to the visitor center and you can pick up the shuttle to the historic district or walk. It's a nice short walk to the village. I recommend the walk, very pretty. We have stayed at the Williamsburg Lodge before. A nicer hotel with a better breakfast and closer proximity to the historic village. In my opinion they are both fine and accommodating.
Where to Eat-The historic village of Williamsburg has a couple of " historic" Taverns where you will find items similar to the 18th century Williamsburg. Not our favorite choices, but for the kids, it is fun. They like the idea of eating in "historic" eateries. Best for dinner, maybe one meal unless you have a package deal that includes meals at the taverns. We love the The Blue Talon Bistro, it is very kid friendly and great quality food. Outside of the park a couple of great places for younger kids are The Peking Restaurant and Captain Georges, two fun buffets, not the greatest food, but fast and easy for the kids. Plus what kid doesn't like a buffet. A nicer option a bit outside the park is La Tienda, this is great for older kids or kids that are able to sit through a longer meal. Great wine selection and wonderful array of tapas.
Lunch time can be a bit trickier in Williamsburg as your options within the historic park are limited to the taverns. However, right outside in Merchants square are some wonderful options. Our favorite is The Cheese Shop. They have great sandwiches as well as an array of amazing cheeses. You can get it to go and picnic in the historic village or eat on site. Dog Street Pub is a great option for both lunch and dinner. Fun gastropub with a kids menu. Of course the other options are just to eat from some of the stands that sell hotdogs and sandwiches.