QUOTE(Cape Codger @ Jan 30 2012, 10:27 AM)

If you don't want to be crammed in and be in an area that is just one big madhouse, may I suggest driving eighty miles farther north to Lake Pemaquid. We have stayed in the Wells and Old Orchard Beach area and found it to crowded. In fact any campground near a beach from Portland south will be cramped and crowded.
Our grandchildren love this place and beg us every year to take them back. The only drawback is if you are looking for ocean beach there isn't any nearby.
Just a suggestion, you didn't state what you wanted or were looking for in a campground. There is a few nice state park on the beach's in NH and even MA if a beach is what you are looking for.
Thanks everybody for the suggestions! - we stayed at Lake Pemaquid a few years ago, and really liked it. We could go back there. You are right - it is great for kids, and although not on the ocean, the water was beautiful. We might just return! Hadn't been to Old Orchard Beach and thought we would give it a try. We have our favourites in Mass., so it is hard to pick!