Thanks for the advice about booking hotels in Istanbul. Now any advice as what area is the best to stay. We will be there a week in October and would like to be able to walk to as many places as we can and to be close to the transit options. The hotels look amazing!

If you stay in the Sultanahmet area you will be close to the major sites, and within walking distance of the Grand Bazaar and the spice market. In fact, all the of the following pictures up to the pictures of the Chora Church and after were taken within a walking distance of our hotel.

http://www.flickr.com/photos/mksfca/...7622934223233/

Having visited the centre of Istanbul, I agree with Michael. A large amount of things to see are in this area, so a hotel there would make sense. I remember a recent thread recommending the Four Seasons hotel. A search on Sultanahmet gives some good info.

I stayed for a week in Beyoglu just a block off Taksim Square at the Hotel Larespark. Great location, lots activity, restaurants, and nightlife. There is easy access on the metro to Sultanamet.
We also enjoyed walking over the Galata Bridge. I think staying in that area gives you a broader perspective of the city.

Arguably the most prominent sights are in Sultanhamet, i.e. South of the Golden Horn (Topkapi Palace, Aya Sophia, Blue Mosque, the Cisterns, the Grand Bazaar and the Egyptian Bazaar to name a few).

Possibly as a result Sultanahmet, while central to a lot of ancient attractions, is quite touristy to my taste - and there are quite a few touts in the streets that will offer anything from advice to umbrellas - ultimately they are looking to drag you into some kind of transaction.

The area around Taksim Sq including Pera with the pedestrian area Istiklal Cadesi is on the North Side of the Golden Horn and represents a slightly more modern Istanbul, though there are significant sights here, too (Dolmabahce Palace, Galata Tower, again to name a few). There are also more restaurants here - and in the more Northern districts like Belek.

In my opinion staying somewhere around Taksim Sq. will provide you with a more authentic impression of Istanbul. Access by tram to Sultanahmet is easy and fairly quick - and if you want to go out for dinner at night that area is far more convenient as there are more authentic options and you will be much more centrally located (essentially if you are staying within Sultanahmet everything worth going to in the evening is 1 hour away if traffic is bad, which it often is in my experience).
Just my opinion, though.

If you're looking for moderd, curent Turkey, then yes Taksim.

Personally, I went to Istanbul looking for history and culture. We loved the Sultanahmet area. Somewhat touristy, yes, but hello - that's what we were - tourists.

The pedistrian streets lined with restaurants, with plenty of outdoor dining, was wonderful at night.

Cheers, the turnip