Priceline has recently made European hoels available to US residents, and the prices and location for Amsterdam hotels seem excellent. For information, check out Sheryl's information-packed board at
http://pub4.ezboard.com/bpricelineandexpediabidding .
Amsterdam is a very compact city, so anywhere you stay in the Center is a good location. Trams take you anywhere you want to go; an especially worthwhile tram line is #20, which is a circular route passing by some of the most interesting tourist spots (including the van Gogh).
Bring a raincoat. December is cold, wet, and dark. (Actually, just about every month is cold and wet in Amsterdam, but December is the darkest.)