I liked the Garni Schernthaner in St. Gilgen for good value. That village is hard to beat for location as well.

Thanks, I'll look into it! Would St. Gilgen be a good base to explore Salzburg from?

We stayed at the Weisse Taube (White Dove) over New Year's 2004. http://www.weissetaube.at/e_einstieg.htm
This family-run hotel is located in the old part of Salzburg, and it is great to be able to walk around the town right from the hotel. The building is from the 1300's and the lobby areas are decorated in very traditional decor, with leather chairs, etc. The rooms are fine - basic decor with a 70's accent. We were on the 5th floor. The world's smallest elevator went to the 4th. The breakfast room is cosy; the breakfast is served rather than buffet. The servers are in tyrolean dress.

Here is the parking policy of the hotel:
"a limited number of free of charge parking spaces can be used behind the block.
Secure parking in a garage is available at € 9,00 (low season € 7,00) per day, distance is 8 min. walking."

We didn't have a car. We traveled by train and hired a driver to take us around the countryside. We visited St. Gilgen as part of that day trip from Salzburg.

Sorry, we were there in Dec. 2002- Jan. 03. From the hotel's web site, the rooms look the same as what we had. The location really was wonderful, near the Residenzplatz, and also very near the path/stairs to the Hohensalzburg.

Thanks. The Weisse Taube is about 20-30E more than hotels outside of Salzburg.
Did anyone not stay in Salzburg and regret it?

I have stayed in Salzburg and also on the Wolfgangsee---I prefer the latter if you want to see the lakes and Hallstatt as well.