what are the names of the major hotels around the EYE in London
England with Shuttles to and from the airport? My parents arrive from
Aberdeen at 0900 one day and leave for Canada on the next day London
time. (beginning August 06)

The London Eye is fairly centrally located in London, but it is just
south of the Thames in an area without too many hotels. Most other
main touristic sights, shopping streets, theatres etc - as well as
hotels - are north of the Thames. However, I think it may be a little
difficult to advise you further, unless you are more specific about
what you mean by "major hotels". As it happens, one of London's finest
hotels, The Savoy, is on the north bank of the Thames, within walking
distance of the London Eye (across a bridge, of course). But a double
room there for a night would set you parents back some 300GBP (about
500USD), which may be more than they are contemplating.

major hotel meaning nice respectable 3*and up. Parents being 75 and 80 years.
the other important piece is the shuttle from the airport.

I am sure Geof as a local can help you, but you might look at
Londontown's website for hotels  - and big discounts!:
http://www.londontown.com/hotels/?utm_source=adword&utm_medium=ppf&utm_campaign=InformationLondonTown

You can click on a map for each hotel.  For your parents, I would
suggest a hotel nearest a station on the Piccadilly tube line to
Heathrow.  I like Kensington and Russell Square areas, but Kensington
(South Kensington, Gloucester Road stations) also is on another line
into the City, if they want to see or ride the Eye.  (There could be a
long line in August.) The Eye is across the Thames from Charing Cross
Station.
If they are coming down to London on the train, Piccadilly line also
goes to Kings Cross RR station, where the trains from Scotland arrive.
 Changing trains on the underground with luggage something to be
avoided.

Here is the "tube" website:
http://www.tfl.gov.uk/tube/

Do check out the hotels on Londontown, there are some great bargains. 
You might also check it for other info and entertainment.

Hope this helps, Myoarin

For a shuttle service to and from London hotels to Heathrow airport,
see http://www.hotelink.co.uk/   .(Are your parents are arriving at
and leaving from the same airport? London is served by four - Hotelink
only services 2 of them -  Heathrow & Gatwick.)

As for 3* hotels, the website quoted by Myoarin would certainly be of
help, as would other websites or guidebooks on London (eg Lonely
Planet, Rough Guide or Let's Go).

Given their ages, and possible unfamiliarity with London, your parents
may wish to get taxis to and from the Eye, in which case they would
not wish to be staying too far away from it; the Covent Garden,
Holborn & Russell Square areas (all served by Hotelink) are all within
a reasonable distance of the Eye.

Wallygoo, I'll keep an eye on this Question over the next week or so;
if you think I could help further, just post another comment.

Accommodation
Royal Horse Guards Hotel (Tel: +44 (0)20 7839 3400) and at 
The Strand Palace Hotel   (Tel: +44 (0)870 400 8702). 
book shuttle 24 hours early. cost 14 pounds heathrow and 16 pounds gatwick