Sounds like the Broadcaster/Hyperlite is a good start--maybe the 4'8?. We are always bringing new people/kids on so we'll always need a starter board.
The hyperlite 4'9 would work well for your wife and kids. The 5'6" would probably be a better choice for you. Another beginning board to consider is the Inland Surfer Blue. If you only plan on having one board for awhile, I think this would be a better option. Boards can become an addiction. I bet Surfdad probably has over 50 boards in his garage. Over time you will acquire a "quiver" of boards. I thought I would never have more than a couple of boards (the 4'9" Broadcast was the first) and now the count is up to 6 and there are another 3 boards on the wish list.
2. Will get rope.
Make sure you get a surf specific rope
3. Choppy Water?
Is WakeSurfing ok in choppy water? Assume it is better than Wboarding since riders are on the wave vs. outside the wake. Advice appreciated.
This is true but smooth water is still better than choppy water.
4. Will watch uTube videos and hopefully board will come with a DVD.
Don't think most boards come with a video. There are plenty of videos on the internet. This looks like a good one, http://www.youtube.com/watch?v=a6Pf5s7HGF0
. One tip that I can give you, don't try to throw the rope to soon. Try to ride for an extended period of time with slack in the rope. Also don't try to ride the board like a wakeboard. Keep a lot of pressure on the toe side of the board.