I am meeting two friends to do a budget week in Rome over New Years. Can anyone recommend a cheap (but not scary) place to stay in or near Rome?

A single economical room at Hotel Julia - http://www.hoteljulia.it .

You don't mention your exact budget, but my sister and I rented an apartment from realrome.com in May--very economical,, not scary at all. See reviews on slowtrav.com.

Have fun!

Hotel Gabriella a few blocks from the train station. Area was clean and safe. Two females in November and we never felt uncomfortable. It was a great location being close to the train and buses. The room was big and clean, the staff friendly. It was well under 100.00 per night. Breakfast was nice.

Fraterna Domus. Rooms in a convent with the perfect location near Pizza Navona. OK, the nuns might be a bit scary for you, but the location makes it worth the anxiety.

Near the airport with a shuttle into town and to the airport is the Holiday Inn Eur Parco de Medici. Cheap, clean and convenient. I think we paid €100 per night 2 years ago.