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Dubrovnik--stay in the Old Town or just outside?

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Planning a sort of last minute trip to Croatia and a bit of Slovenia this October (2012). We (husband and me) will start in Dubrovnik and plan on three nights there. We're trying to decide between an apartment in the Old town and one outside. Have looked at various websites and we are taken by some of the views from apartments outside the Old town. but we know we want to spend much of our time in the Old town and are very taken with its obvious charm. One concern about staying in the Old town is the possible noise; concern about staying outside the town are the hikes up stairs which many of the apartments with great views seem to require.

I guess I'd love an apartment in or very near the old town but with a great view---does such a thing exist? And if not what are opinions on staying in the town vs just outside. Thank you so much

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