I agree that the Union Sq area is the most convenient to stay to see major attractions. I have gone to the Chinese New Year parade several times... you will not have trouble finding a place to see it, since it has a fairly long route. If you like muscial theater, I would suggest booking tickets for Beach Blanket Babylon (website with same name)... it is a unique SF experience. Also, Lion King is going to be playing here during that time. Also, if you like art museums, SF Museum of Modern Art has the Diane Arbus collection through Feb 8... it is outstanding. Have fun!