that is so hard to believe that alllllll the rooms on disney property are booked. there are thousands of rooms. that is great for disney like you said, and unfortunate for you.
well, one time we did the same thing, just drove down that is, we were in college so we couldnt money the on property places so if I could recommend a nice place off property about a 5 minute drive through traffic to the parks, it is "Racoon Lake".
whoaw, let me tell you, you get what you pay for when you pay $30 a night. on a college kid budget, perfect, it was actually cleaner than some of my friends apt's, but the view of the lake and the ducks that attacked in the morning for food, just made the mornings and the evenings returning a little adventurous.
anyway, sorry to hear that you couldnt find a place.