My gf and I went to Orlando last October (08) and stayed in the Best Western Movieland (now called ) at the north end of International Drive. I think it's a 3* hotel but the rooms were clean and huge, the pool was great, the food in the attached restaurant was tasty and cheap (buffet breakfast for $4.95). We paid $691 for 10 nights.
The hotel is literally right across the road from the Wet & Wild waterpark, a 5 minute bus drive to Universal Studios and Citywalk and close to a lot of shops and restaurants. One of the mall is 10 minutes by bus, Seaworld is 20 minutes by bus and Disney is just over an hour by bus(es).
We don't drive so we used the tourist bus (iRide) for a few days. There's a stop right outside the hotel and it serves all of International Drive (but not Universal or Disney). The city buses (Lynx) are cheaper, faster and more frequent. They also have better air conditioning. There's a bus stop right for that outside too and you can get to Seaworld and Universal by 1 bus. Disney requires a connection near Seaworld. You can get a Lynx bus direct from MCO airport but we had too many bags and took a taxi both ways.
We didn't find many good bars at all, Citywalk is probably the best place to go out. If you like steak, find Charlies Steakhouse. It's about a 15 minute walk from the hotel and has won Best Steakhouse in America award several years running. It's a little pricey compared to American restaurants but cheap by Irish prices and *well* worth it.
Finally, you can get a combo ticket which includes multiple trips to Seaworld, Wet & Wild and both Universal parks. It's very cheap and worth getting, if only for the flexibility. Best of luck if you go, we had a great time there and can't wait to go back!