Lancaster/Hershey Recommendations?

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Starlite is nice.  There are several nice campgrounds here.  I would recommend calling for reservations - that may limit your choices.
 
We regularly stay at Country Acres Campground off Rt. 30 near Rt 896, smack in the middle of Amish country and close to many attractions, shopping and restaurants.  I second the Strasburg Railroad but also the Toy Train Museum.
 
You can make a full day of it just in Strasburg.  Besides the Strasburg Railroad train ride there's the Railroad Museum of Pennsylvania directly across the street.  Combo tickets to both are available.

Then there's the the Choo Choo Barn.  A gigantic (1700 sq. ft), fantastically detailed model train layout of the Strasburg area built by one man after WWII and now maintained by his family.
 
My second for the Strasburg Railroad included the museum.  I took my granddaughter there (I think she was 11) and she loved it.  I also second Choo Choo Barn.  The layout is absolutely amazing.  There is so much to do in the area it would take days to cover it all.
 
We went some 30 years ago and saw something called the Pretzel Factory I think. Kids could make their own pretzels. They really liked that.
 
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