A friend of mine is writing a research paper and has posed these questions to the locals.  Thought I'd share my responses.
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Ok question 1 is: Do you have Santa in your house?

You bet! December without Santa is a month without sunshine, IMHO.

Question 2 is: If so is he a pagan Santa or not?

I don't put any sort of label on that personally. We teach the pagan origins of the Santa personae, including the modern interpretation and usage. But "Santa" today is just a jolly fellow in a red suit for me. He makes me happy.

Question 3 is: Do you only do pagan holidays, mixed, or Christian only?

We celebrate both in different fashions. Our religious observance is Winter Solstice, and we also participate in our cultural family Christmas celebrations. Xmas morning has a tree, Christmas carols (yes, all the classic religious ones as well as secular), and presents. I have never seen the need to water down the fun cultural aspects of Christmas because we're pagan. I have happy memories of the day and the season, and refuse to give them up.

Question 4 is: How do you teach your kids about Yule with Christmas being so common place?

See Question #3. We simply teach them that "we honor this holy day this way, and Christians honor it this way." Our children have been free to attend Christian services with their grandparents if they were curious. There are many religious holidays around this timeframe; Yule and Christmas are just two of them. We don't really make a big deal about it; they're just there.