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Albuquerque Balloon Festival accommodations?

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Hi Fodorites,

My friend and I plan on attending the Balloon Festival Oct. 6-Oct. 12, 2010, and we are looking for either a hotel or a B&B, but there seems to be few accommodations in the Old Town for those dates. Would you recommend staying near the airport, northeast of town or near the Balloon Festival. Are there any areas of town to avoid?

Is there public transportation to the Old Town? Is there public transportation to the Festival from the city? Would you recommend renting a car for our stay? We also plan on visiting the Carlsbad Caverns.

Thank you!

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