I just got got back from my first visit there, what a wonderful city.

We went to the tourist booking office at central station and got the AMS City Centre Hotel (about a 15 minute walk from the station) for about $70 a night. (checking online it seems to be going for about $125-ish.) I think it's about a 3***, our rooms are tiny but very funky, newly refurbished and very clean, almost a 'boutique' hotel style-wise. The included breakfast was fine, and it's right across from a tram stop, very convienient. The nieghborhood didn't strike me as particularly grotty, but I used to live on the lower east side.

Have a great time!