Bruce,
You are really going to enjoy the Albuquerque Balloon Festival. We attended a few years ago - it is really awesome.
If I might pass a little info on to you: The first year we were parked at an RV park about 10 miles from the festival so we had to wake up about 4AM and drive in HEAVY TRAFFIC to festival area. We walked around and watched as the participants unfolded, laid out the balloons, etc. Long story short, it was about 7 or 8 AM before they started taking off. My point is, save your self a lot of hassle and arrive at about 9 or 10 AM. You will get a chance to see many balloons take off at that time and you won't be fighting traffic and crowds.
The best situation of all is to reserve an RV site on the Festival grounds. I think that it is all dry camping, but whatever they charge it would be worth it IMO.
Good Luck,
Tuga & Karen Gaidry
2012 Honda Pilot