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[DisneyRon]

Where is the VIP section?

middle of the square in front of the castle. Or at least that's where it was last year.
That's for Dreams by the way, not the parades.

[Lisaa]

For the parade you could try the right side of the castle (near the disability area). You can only stand at one side so the characters will all turn to you and because it's near the beginning of the parade you'll be able to go into Fantasyland while everyone else is still watching the parade. I believe  this is the same area NCC1701Q recommends.

For dreams I agree with DisneyRon! I was actually in the disability area which is next to the place he described and I had a great view!