On the hotel question, from the NOR:
It is suggested that participants not wanting housing stay at the Lexington Hotel. (Phone: (321) 773-0325) The Lexington is across the causeway approximately 4 miles from Ballard Park. We do not endorse any of the motels on US1 (South Harbor Blvd.).
I don't know how many (if any) of the teams are staying at the Lexington - most are being put up by Club members and local cat sailors.
On spectator boats - YES! Melbourne Yacht Club does indeed have multiple spectator and press boats on the water all week. How cool is that?