Ooty its a nice place, just to enjoy the climate. Its not a place for kids. I was there by last September.
As for stay is concerned I stayed in Sinclair, it was really a nice place. But you need your own vehicle, if not dont opt for it.
Fern Hills is a beautiful place to stay, but better make it with a gang. Its a resort type and its quite good.
People suggest places for visit : Pykara(Dont go there, its a waste of time).
Mudhumalai is a nice place, dont miss it. Its a mixture of thrill and joy. On our way back it happened a elephant gang passed by our vehicle with its kid...It was really nice. Do make there in the late evening to have more fun. But people suggest its not advisable. You can also stay at Mudhumalai...Enjoy ur trip and you too will love the queen of hills.