Check out the weekly guide that OCNJ publishes each week to advertise special events - many are geared to the kids. Depending upon the ages of the kids, it's generally best to hit the rides around 5-6 pm to avoid lines. Most, if not all the rides in OC are geared to the younger kids - ages 3-12.
The Chatterbox on 9th street is a fun place to eat, I like Mack and Manco's pizza, there's an Italian place on 8 or 9th that is very good as you can tell by the lines to get into it - can't remember the name. I have found many small corner stores that prepare sandwiches to be fairly good. The Shell Museum is an interesting stop for the kids and the OC Historical Museum is interesting for the adults but not the kids. Go visit Lucy the elephant in Longport and the Cape May Zoo - I think it's a $5.00 a car load entry fee.
http://www.oceancityvacation.com/
We'll be there in August.