The St. James Court is a nice place with rooms running about 2000 rupees and up. I haven't been there in a couple of years, but it was very nicely maintained but was showing a little wear then. The beach was just "nice" and pool was small. The food was okay as well. I have not been to the Nalla Resort that bills itself as an "Eco-Resort" but it might be worth checking out online. I had some local friends stay a while back but they were not too impressed, I think. They said some work was still being done on it, and they were disappointed there was no swimming pool as the surf can get very rough on the east coast--too rough to be safe for kiddies sometimes.
Further north, near Mahabalipuram, there are also some very, very nice resort areas that I like, too. I have stayed at Ideal Beach on many occasions. It has an excellent restaurant, two swimming pools and a nice kiddie area, and the beachfront is well-kept and beautiful. A cottage begins at about 4000 rupees, give or take, and the prices go up. That is a great deal, I have to say, for the quality of resort. I've been to some of the others, like Mamalla, and of course the uber-expensive Fisherman's Cove, but now when we plan a retreat in the area, we go to Ideal Beach (and it is very family friendly).
and also http://www.idealresort.com/bresorts.htm just in case you think about staying outside of Pondy . . . almost 8 years ago