We travelled to DLR last October and had a blast... didn't have to use a hotel because we have family in CA. So, now we're planning a 4-5 day trip to WDW in April and we'll need a hotel. We are looking to be budget-friendly ($100-120 per night) but would like to stay on Disney property. We figured this way we will not need a car to get us to Magic Kingdom, where I think we will be spending most of our time. So here are the questions:
1) Could you recommend a budget-friendly Disney property for a husband, wife, and 3 year old -- hopefully not too far from the Magic Kingdom AND with a fun pool-area when we need a break?
and
2) Any other recommendations for this WDW newbie w/ a little one in tow?

Thanks so much!!

The All-Star resorts are the most affordable of the hotels there. :) There are three, All Star Movies, All Star Sports and All Star Music. We stayed at movies 2 years ago and liked it pretty well. The rooms are small but our area, the Love Bug was pretty quiet. They have a big food court, two pools and a playground and the theming is pretty fun. :)

Pop Century is also in the same budget category as the All-Stars (Value, in Disney-speak) and is the newest of the Value resorts.

None of the Value resorts have slides at their pools, but I'm not sure that's needed for a 3 year old.

Also, I wouldn't discount the other parks! 4-5 days is not a lot for a WDW visit, especially a first visit - so I recommend doing lots of research.

Drince is right.
Research is your friend.
There is a lot to learn and the more you know the more flexible you can be in touring the parks.
For example, you run in to big crowds or long lines, research can enable you to change plans rapidly and have more fun.

I'd say POP Century too, I like the bus service there best of any WDW resort.

You didn't say if the 3 yo is a boy or a girl, but look at the other parks, don't limit yourself to the MK. At that age mine loved the Animal Kingdom (the safari ride) and the MGM Studios (Beauty and the Beast show, Voyage of the Little Mermaid, Muppets, etc.)

Also book your ADR's now-- even if you haven't made your hotel reservations yet.

Another vote for the Pop Century - definitely a value resort, but newer and in my opinion much nicer than the All Star Resorts. Better landscaping, great food court, and of course bus service to all the parks.

My other suggestion is to take your time, go at your child's pace, and take naps in the heat of the afternoon. Don't go on attractions that you might think are too intense or scary for your child. Some little ones love the Haunted Mansion while others are terrified. Only you can judge what's acceptable for your kid.

Have fun!