Where to stay in Rome

Finding a hotel in Rome can be a real challenge. I suggest asking help from friends that have already taken a trip, or finding an expert for a fee. If you pay someone to help custom plan your trip, you may actually wind up saving money and having a better time. Italians are notorious for quoting different prices for different nationalities, sometimes a middleman can help in the bargaining process so you can stay relaxed on your vacation...
If you really want to do it on your own, here is some advice on the good and bad areas of Rome for hotels:
Budget Vacation:
Avoid: Termini - the hotels are not great, the area is pretty bad
Try: San Giovanni area, Medaglio D'Oro, Monte Verde...or try Bed and Breakfasts outside of Rome (try an area like "Castelli Romani")
Nice Vacation:
Avoid: Vatican Area, EUR - price and quality do not match up in these areas...the food will also be overpriced and not what real Italians would eat.
Try: Parioli, Aventine (one of my favorite areas!), or a luxury apartment in the city center
Luxury Vacation:
Avoid: Via Veneto - the glory days are past - but the prices are still sky high
Try: Hotel Eden, Hotel Hassler