Hyatt at Goat Island was very comfortable on my last stay in Newport. Try Asterix & Obelix for dinner. I picked it based on the Fodor's review and it was great. Don't forget the mansion tours and the Cliff Walk.

Cliff Walk definitely! (but bring a sweater, as it gets pretty chilly along the water). And the mansions are wonderful - they're expensive, so it's a good idea to buy a pass at the outset which gets you a discount if you're visiting more than one. Touro Synagogue is also worth visiting - it takes hardly any time, but it's fascinating. For good food but, more importantly, an incredible view of the water, sunset, boats, etc., eat at Christies or one of the other restaurants right on the water's edge.

I agree - definitely do the Cliff Walk. Then drive around Ocean Drive and Bellevue. Take a tour of a mansion. Go shopping on Thames and Spring streets.

Restaurants: the White Horse Tavern and La Petite Auberge are both charming and romantic, the former more pricey than the latter. Clark Cookhouse is nice, more casual. Asterix & Obelix is a newer place farther down Thames than most of the action, but it is a good place, more New York then Newport.

Lodging:
If you're looking to spend, go for Castle Hill - great setting. It's also a hotspot for Sunday brunch. Otherwise, most of the b&b's are decent - just make sure they're central. If you're looking for more of a hotel setting, the Hotel Viking
is a good mid-sized place to stay. There's also a Marriot in Newport, but it is huge and I think would take away from an authentic Newport getaway.

Have fun!