Hi Paul and Ann-Marie,
Our recommendation for a campground would be Pine Creek Campground, just south of the city limits. It's quite new, very clean and all hookups. Only drawback is that it's a little close to the highway. If you can book away from the highway, it's just about ideal. It's about $25Cdn/night and is a Good Sam Park (10% off for Good Samers).
It's a very short drive (8 min) to a major big box shopping area with three supermarkets and the end of the LRT train line. You can park there and go to the Stampede grounds, downtown, NW & NE sections of town for $2 each way. Very convenient and no parking hassles. Also, since it's the end of the line, you can most likely find a seat.
Regarding the parade, Calgary is an old fashioned city and goes all out for the parade. Many businesses close during the parade so their staff can see it. I notice a lot of cities nowadays are too "sophisticated" to attend such a thing and yell & cheer. Calgary jams the parade route every year and the parade is about an hour and a half. Friday of the parade is also one of the slowest days at the Stamped Grounds and therefore easier to get around to see things. The Stamped runs for 10 days, from Friday July 7 to Sunday July 16, 2006.
If you come, leave suits & ties at home because most of the city dresses western. Also, be sure you can attend some of the many, many free Stampede Pancake breakfasts all around town. One of them, on the first Saturday of Stampede hosts 50,000 to 70,000 people for a free breakfast at a shopping centre and lineups are 5-10 min. This is BIG!
http://www.discovercalgary.com/Calgary/WheretoStay/Campgrounds/
http://calgarystampede.com/about/contact_us.html
Hope this helps. Let me know if any other questions
John & Mary-Ann