We've done Williamsburg area quite a few times over the years, usually with a side trip to Busch Gardens. We've stayed at a few different hotels, including the Great Wolf there. If you/your kids like the historical side of things, there's also Jamestown/Jamestowne (first is the recreation site, second is the actual archaeological site) and Yorktown nearby.
ETA: our crew loves to take the free ferry from Jamestown, too, so you might consider that, although, it's not too exciting if you just take it & have to turn around to take it right back. We usually use it as our route home.
-Kris
DS (9/05)
DD (8/08)
DD (9/12)