A dog that doesn't shed is a Labradoodle. I don't know what sort of disposition they have, probably depends on how you treat it... I know poodles can be rather mean. Labs can be anything from sweet, to hyper to mean as a rattlesnake.

Friendly around kids is a Golden (my personal pick), also make fantastic hunting dogs, unless you want it to point... then you are out of luck. And they do shed, but not as bad as labs do, not even close. And they aren't really small.

I think that you should seriously consider a Boykin. They don't shed terribly much at all, and are no larger than a Cocker Spaniel. I have hunted behind boykins that flushed quail, and the first Tundra Swan I ever shot was brought to hand by a Boykin with a heck of a lot of heart (it was a water retrieve mind you... it couldn't drag the thing out of the water). They are very sweet around kids, and very very loyal dogs. Here is a website I would take a peak at. Most folks that are not from the southeast have never really heard or seen Boykins, as they are not recognised by the AKC (and thats by the wishes of the breeders, not the AKC).

This website gives you the background info on the Boykin itself. A good friend and former co-worker of mine named Hamilton Boykin is a direct descentant of the breeds founder, in fact, he inherited Whit's Purdey 12 gauge. Ham's Boykin, Maggie, was a fixture at our shop in Charleston for several years. And was very easy going and friendly to all customers who came through the store each day.

http://www.boykinspaniel.org/boykin.html