Sorry for the inconvenience everyone.
johna, unfortunately I cannot be very encouraging for your early December trip. There is no other time of year that occupancy levels are higher in NYC than from around Thanksgiving until Christmas. It's doubtful that any hotel would allocate any inventory to Priceline or Expedia's Hotel Price Matcher, with the possible exception of a day or two prior to each checkin day, if even then.
I tried myself last year (for a friend) and had absolutely no luck whatsoever and I bid very high (up to $350 for a 3*). I started bidding about 3 weeks prior to the 12/7 checkin date. I could find nothing at the 3* or above level in Midtown under $400/night. It will be very difficult for you to get anything other than very basic accommodations at $125.
doc, I encourage you to read through the postings at the board, especially the Hotel FAQ and as many other categories as possible. There is really a wealth of information on the board, including free bonus money offers unavailable through Priceline directly. Feel free to post to the proper category if you have questions.
If you read through the postings in the How I Found This Message Board category, you will see a number of FlyerTalkers.
[This message has been edited by Sheryl (edited 06-19-2000).]