I saw this discussion after most of it had already taken place, and I don't intend to butt in. But I should mention one thing. The nearest house to the campground boundary is actually a little over 50 yards away, not 500 yards. The entire campground site is within no more than 200 yards from existing houses. You can verify this for yourself using the resource in my original posting at the very top of this thread: the publicly available county tax maps on http://gis.co.ulster.ny.us/. Zoom in near the intersection of 299 and 44/55 until the "Aerial photos" layer is enabled, and select the "2009 Infrared" photo layer. You'll be able to see the driveways, and the houses at the end of them, in blue. The campground site is the fourth parcel from the intersection, on the south side of 299. You can use the measurement tool (the icon with the ruler and question mark) to estimate distances. It's approximate, but it will give you a rough idea.
I mention this only because those who camp at the site and those who live near it will be close neighbors. A few posters upthread commented that they just want a quiet, peaceful place to camp. That's pretty much the same thing the people living nearby want: a quiet, peaceful place (I'm speaking only for myself here, but I'm fairly sure the vast majority feel that way). I think we can all have that, and the campground and surrounding residential neighborhood can coexist peacefully, if we're conscious of--and sensitive to--each others' close proximity. That's why I reached out to the group on this forum. I appreciate having the chance to do so. And I'd be happy to talk in person with anyone who's interested.