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We have been to both places on the Fantasmic Dinner package. We liked the food at both, but given the make-up of your group, I would take Mama Melrose. While you would have a bigger variety of foods to choose on the buffet, Hollywood & Vine can be very loud & hectic...and would not be very relaxing for 2 adults having to keep track of the comings & goings of 7 kids. At Mama Melrose, they'll seat you together, and you'll be served...it's also quieter in Mama Melrose.. Much more relaxing. The food is good enough (think Olive Garden type Italian food.)
We have eaten at both locations on the Fantasmic Package and I have to say I will never eat at Hollywood and Vine again. It had to be one of the worst meals I have ever eated on property. It was a tie with Chip & Dale meal at EPCOT. I would say go to Mama Melrose.
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