I have stayed at the MGM, Bally's. Luxor, Mirage,Mandelay Bay, Excaliber, Paris, Harrah's and Planet Hollywood. I have been to Vegas a lot and would recommend that you stay on the strip. As someone else stated the MGM has several hotels nearby. I would check MGM, Luxor, NYNY and go by price. That way you can easily walk to the MGM.
My favorite hotels there are Bally's (large rooms), Paris(beautiful), Mandelay Bay(beautiful, but to far south), and the Mirage.