I am continuing to plan our trip to the Rockies. So far we are staying in Calgary 2 nights, then going on to Banff and Jasper. From Jasper we want to go to Edmonton for two nights. Any recommendtions as to where to stay in Edmonton. We definitely want to see the mall and Elk Island.

There are some fun theme rooms in the West Edmonton Mall so I would suggest you stay there. We like the Roman rooms.

Except for the novelty of it, I wouldn't recommend staying at West Edmonton Mall. You will be on the western edge of Edmonton surrounded by roads and traffic. From there you won't be able to take in the ambience of most of the city, especially our picturesque river valley.
I would recommend staying at the Varscona or Meterra on Whyte Avenue (a vibrant area of shops and restaurants), or Fairmont Hotel MacDonald (downtown) overlooking the North Saskatchewn River valley.

Elk Island National Park is a 45 minute drive east of the city - makes for an easy day trip - a good place to see bison (both plains and wood bison), and the aspen parkland natural habitat that prevails in this part of Alberta.

Borealis, after having thought about it more, I retract my idea of staying at the mall! It is fun but you are right - if you want convenience and charm, I would recommend something elsewhere.

We always stay in B&B's ourselves (well, except for the time we stayed at West Ed).

if you really like to shop or plan on spending some hours at the waterpark, then staying the the wem hotel is smart. but, the hotel is nothing special and is pretty expensive. i would rather stay at the hotel macdonald (expensive) or the mattera on whyte avenue.

When last there I used Priceline for a great rate at the Crowne Plaza and landed a room with a terrific view of the lush green valley and the Muttart Conservatory (is that the right name?).

It is adjacent to downtown Edmonton and an easy walk to central attractions. (though the window of acceptable weather might run from late June to mid August)

(On August 31 we could already feel the terror of winds of the sort that indicated that the harsh Canadian winter wasn't too far around the corner - but in fairness it had been 80 degrees three days earlier)

Stay at the Hotel MacDonald - you'll love it.

We've been at Crown Plaza and it was very nice, and also went to Elk Island.
Be carefull to drive in the park, because the bisons could apear in any moment. Read the guide that is given to you at the entrace of the park.