we stayed here with our young boys a few years ago: http://lovina.puribagus.net/villas.htm
Pleasant gardens and perhaps the best place to stay in or around Lovina. You can get taxi's easily to places like Tirta Empul (http://www.flickr.com/photos/colloidfarl/2413613382/) or other day trips. This place is a regular resort though and all that comes with it good and bad. I couldn't recommend the food, although just outside the entrance on the track leading back to the main road is a wonderful little family warung that makes for far better food and far better atmosphere. All in all a good spot to explore from for a few days. almost 10 years ago
I also stayed at Puri Bagus last year it has a semi-private beach so you don't get hassled by hawkers, and the spa is devine.
I would definitly suggest eating at the restaurants on the road outside the hotel, they even offer cooking classes at one of them. I'd reccommend ordering the Babi Guling (suckling pig, order one day in advance) for a true Balinese delicacy and if you can fit it in the Dadar Pisang for desert (crepes filled with banana palm sugar and coconut).
You can stay a little closer to town if you like but there is a driver(Made) just at the entrance of the resort who will drive you anywhere for a fee (just be sure to arrange the fee before getting in).
Another restaurant I would reccommend is the Barclona in Loving (yes that's the correct spelling) The best meal we had in Bali!!!! Try the banana milkshakes!
Enjoy almost 10 years ago