I believe the Pan-Pac is connected to the mall but IMHO, it's a convention hotel (being right at the Trade Center) - very boring environs apart from the mall (which I believe is actually called "The Mall").

I would stay in the Bukit Bintang area - otherwise known as the Golden Triangle - central, lots of restuarants, bars, clubs, shopping and walking distance (or a short 5-min cab ride away) from Chinatown.

The Pan-pac can be had for RM264 from reliancetravel.com. Depending on depth of your pocket , I'd recommend the following hotels in the Golden Triangle area:
1) Swiss Garden (US$35 - halfway between Golen Triangle and Chinatown - easy walking distance both ways. 3-star hotel. Local buffet breakfast. Looks like any other tourist-class hotel e.g. Marriott in the US)
Rate available from www.reliance.com.sg
2) Novotel Century. Ditto above on type and price but in Bukit Bintang area itself.
3) Hotel Istana. Right smack dab in the Golden Triangle. US$65 at www.reliance.com.sg. Luxo 5-star hotel (marble bathrooms, sep. shower/bath, plush cotton robes, slippers etc) with nice buffet dinner with local Malay culture show.

There are many other hotels that are good and given that loads are so light because of the prevailing external factors, you might get a better deal by emailing their reservations directly.

I believe all rates above are net of taxes and include b/fast. Food options in KUL are aplenty (local,fast food, sitdown etc) and all menus are in English.