The chapel is very much still there! I went there several times earlier this year in order to improve my Welsh. Very friendly congregation, some of whom invited me to Sunday dinner! Wonderful experiences of speaking Welsh, the language of my ancestors which I have learned whilst living in England. The services are held on Sunday at 10am so you should be able to visit then. If you are walking, turn right at the war memorial in Llanbadarn Fawr village square and keep straight ahead and very soon you cross a road at a mini roundabout, keeping straight ahead still, in the direction of Mcdonalds and Morrisons, but long bfore you reach them you'll see Capel Saron on the right, right next to the main road. Quite a plain grey building it is, from the outside. Keith Lewis is one of the members and a friendly fellah. No, there is no cemetery there. The side of the hill high above Eglwys Padarn is still being used for some new graves and the view over Aberystwyth from up there is wonderful.
You must explore Padarn church whilst in the village as it is very beautiful and full of history. Dafydd ap Gwilym, our national treasure poet used to worship there. One of his famous works talks of how he can't concentrate on the sermon as he is distracted by a beautiful woman in the audience! He was known as a womaniser though!
http://www.flickr.com/photos/bara-koukoug/5463913457/PS just found this photo of Capel Saron on Flickr
All the best, very interesting family story I'm sure.
Diolch yn fawr, thanks very much.