DE07 - Hey, welcome back!!
Ride! Ride! Ride! Don't worry, just have fun! I'd be shooting for starting riding 3 or 4 days a week, just fun short rides that you and your nephew enjoy. (maybe stop at a park halfway for a run-around.)
I second the idea of a trailer. If you can contact Tri-County Bicycling Assoc or the Ann Arbor bike club, they might be able to find a trailer for you to borrow. Also check kids' consignment shops for used ones for sale. We had a trailer and it was *marvellous*! The kid is safe and secure, has room to squirm, and can bring toys/books/juice.
If your husband got a cruiser or a hybrid, would he be able to ride with his bum elbow? Most of his weight would be on his seat, so maybe his elbow could handle it?
Otherwise, walking is always a good option to get him started. Maybe if you walk with him too, he'll be more willing to go for it.
DALMAC is great fun! I did it about 4 or 5 years ago, there were a couple other west coast folks there. It was so well organized and such a blast! What a great goal for you two!
"If Americans want to live the American Dream, they should go to Denmark." - Richard Wilkinson