Lucky you...
Well, you will have fun..many options..check the OC website for calendar of events..
http://www.ocean-city.com/
You have bonfires, concerts on the beach, Sundaes in the Park, free entertainment, refreshments at a cost, unless you bring your own cooler..
If you went to OC for a week each year, dined out every night for 10 years, you would never repeat a restaurant..choices galore..
to save some money, use take out..saves on drinks and tip..but my favorites for dining in and a must every trip is Seacrets, Bayside 41st street (Had my 50th Birthday there last year) and Greene Turtle, 118th st..a sport pub, pub food but wonderful Crab Cakes..
You must visit Assateague Island National Seashore website:
http://www.nps.gov/asis/ The kids will love the free roaming ponies..Summers at Assateague are generally hot and humid. Mosquitos and ticks are abundant from spring through autumn. Insect repellent and/or protective clothing is recommended if you take the trails, my favorite is the Life on the Marsh Trail..so relaxing to walk this trail.
Shopping..TAX FREE all of Delaware, Tanger Outlets save for a rain day.
Boardwalk is fun, try the French fries at Thrashers, carry some ketchup packages with you, since they serve them with salt and/or malt vinegar, YUM..kids will ask for the ketchup..
I took the ferry once, to Lewes DE..it was very enjoyable, able to see Cape May and the lovely Victorian homes, the ferry ride was during Sunset, problem is making reservations and hoping to beat the traffic to arrive on time..if you do leisure trip..you and kids will enjoy it..but reservations a must..the return trip you would have better control of arriving on time for the experience.
The timeshare is right on the beach..never stayed there, but have seen the location on past visits to OC..an outdoor pool too...I believe Oceanview from the 3rd floor and up since a small building is between timeshare and beach...but you still ON THE BEACH..Take the bus each day for @2 per person, ride all day for $2..hop on and off as much as you like,,can get crowded at times, summer is busy with traffic..If you golf, great prices and courses, make reservations ahead of time...boy, wish I was coming with you.