We stayed at the Hilton Danube which was excellent and 2 minutes walk from those fantastic old trams that take you into the city.
You must go in the Prater Wheel - it is so old and creaky but great fun.
We budgetted half a day to visit the Somburg Palace but ended up spendinga whole day there and thought it was amazing (could also have had something to do with getting lost in the maze.)