St. Martin is one of the nicest places to visit and has a really cool airport to boot(check out pictures on airliners.net).

As for where to stay, it all depends what you are looking for.

The French side is generally younger, less commercial and more European, whereas the Dutch side more modern and relaxed.

Marigot and Orient Bay are both nice on the French side. I have yet to find a hotel I would reccomend...but most should be OK.

Good luck and enjoy the trip.