I am fresh off of booking hotels in Venice and Florence, and all the reviews and searching is starting to run together.

So here's where your help comes in! After looking around a bit with Trip Advisor and Venere - I'm still at a loss for what's best.

Here's my situation. We are planning to use Sorrento as a base to travel to Pompeii and local sites. I want to keep the budget under $300 per day - $250 would be just about right. We are only staying for 3 nights - yes, I know we are crazy for not staying longer, but I did say we were a little crazy. We don't mind a little walking around and a little uphill.

What are the pros and cons on staying "in town" or away from town?

Anyone have any specific recommendations for us?

I'm not sure what you mean by "away from town." The advantage to staying "in town" and staying in Sorrento in general is the access to public transportation to Pompeii, Herculaneum, Naples, Capri and the towns of the Sorrentine Peninsula and Amalfi Coast. If you're not close to the public trans (especially for a stay of only 3 nights), you'll waste precious time just getting to the things you want to see.

Go to Tripadvisor.com and search Sorrento B&Bs. (You can search hotels too, but the B&Bs tend to have lower rates.)

We've stayed in town and up the hill on Via Capo. In town is a bit more convenient for getting to train and ferries. However, I loved the Hotel Minerva on Via Capo, and it is within your budget. It has absolutely great views of Vesuvius and the bay. The terrace is lovely at all times of the day. There is a very good restaurant (with great views) across the road and a good, very small, local place a little further up via capo. If you want to just relax in the evenings after sightseeing, or an afternoon by the pool, you might like this.

The Aminta is probably in your price range and has great views.
www.aminta.it

Il Nido is cheaper and a bit further up the hill than Aminta, but offers a free shuttle into town.
www.ilnido.it

Hotel Michelangelo is in a great location and I think within your budget. Close to trains, buses, the main square and the shuttle to the harbour. Small family run hotel.