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2 Nights in Venice - Where to stay? Venice or any other island?

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Hello..

We are planning a two night trip to Venice (05/31/2011 - 06/02/2011). We would ideally love to stay in Venice, but cant really find any good hotel options for our budget of 85 or 90 euro/night.

Wanted to know if it is worthwhile staying away from Venice in Lido or some other island - both money wise and comfort wise - considering that we only have 2 nights so hardly 1.5 days to enjoy Venice..

Any suggestions on good budget hotels or apartments in Venice for 85/90 euros a night?

Thanks

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