Hi Coop
Sorry, I haven't been on the forum for a while now and was just reading up on all the decisions you came to before deciding on
Niederau in Feb 2010 etc!
Just to try and give you more reassurance (if you needed any!) but myself, the wife and 3 children (all girls ages 8, 6 and 4) went in February and had a fantastic time. Also took along the in-laws etc but thats by the by.
I'd done a bit of skiing before but they were all beginners (tho' the 4 year old was too young to ski so kept her busy with swimming and snow play and the like) but we all had an amazing time, you'll be surprised, if the kids stick ski school out for the week they'll be up to skiing reds no problem I promise you, they'll come along at great speed once they're up and about on their skis.
One thing I noticed you mention is the blue ski school, we went with Inghams and so used the reds and I can't fault them one iota (sorry if you're already stuck with the blues am sure they're fine too!)
You may think organisation is a bit higgled-piggledy on the first morning but it does all work I promise you. My wife and 2 eldest were all on beginners courses and loved every second and when not minding the littl'un I did some improvers lessons. So we had a few different teachers between us but couldn't fault any of them.
Also Niederau is fairly compact both from a village point of view and runs point of view so really is an ideal place to learn for them I'd say, my kids are haranguing me to go back so something must have been right. All in all am sure you'll have a great time, let us know how you get on! Oh and must say the relatively short transfer time was a bonus too!