Brandi,
If you are talking about the new Grand Occidental a friend of mine stayed there last year just after they opened and he really liked it, i don't know what you have heard but he really talks it up. he says the food is very good, the rooms are very nice and the service was good. and if you dive, the reef is just off shore from there.
It is quite a ways from town and the cab fair is around $12 one way, El Presedente is closer to town and is a very nice all-inclusive.
my wife and I stayed at an all-inclusive the first time we went to Cozumel and didn't have a very good experiance, but the Del Sol, (now under another name, maybe Park Royal, who knows because it changes every year!), was under construction and over half the hotel was closed down so i don't think they had very much money comming in. the food was awful, canned fruit for breakfast, CANNED FRUIT!! IN MEXICO?! and the meat at dinner was unidentifiable.
we stay at La Ceiba every year now, it's close to town, clean, the foods good and the service has always been very good. I think they even have an all-inclusive program now but I'm not sure.
there are a lot of nice places to eat in town that won't break the buget if you decide not to go all-inclusive. Casa Denis, Capt. Navagante, Prima's all have great sea food, and there's always Carlos 'n' Charlies and the Hard Rock. I'd suggest going to the Museum for breakfast one day. and visit some the beach grills like Playa Corona has very good food. also rent a jeep and go to the other side of the island and eat at Coconuts, good food, great Margaritas (be careful, very strong!!!!!!!!) and a beautiful location.
We are going down in September and staying there for 1/2 the week at La Ceiba and then moving to the Grand about mid-week to meet the friend I mentioned earlier.
Just remember when your there that you are on "island time", slow down and enjoy! life slows to 1/2 speed on an island, and sometimes 1/2 that in Mexico.
hope this has helped and not confused you, have a great trip
God bless,
sharky