I have never been able to find the perfect hotel in Nurenburg. Would like to stay somewhere else and take train into Nurenburg.

If the Christmas Market within walking distance of the train station or will be need to take a taxi?

What city/town would you recommend to spend several nights in that would have good direct train access to Nurenburg? I would like this town to have some nice hotels/inns/b&b and also have its own Christmas market.

Any help please.

Yes, you can walk from the train station to the market in Nuremberg.

Munich is an hour by train and has a very nice market. You could easily base there and make daytrips by train. Lots of lodging options there, too. From there you can also take the train to Salzburg for the day to visit their market.

Bamberg's 45 minutes away.

Bamberg
Regensburg
Wuerzburg

... and please call the city either "Nürnberg" or "Nuernberg" or in English "Nuremberg", otherwise you'll have trouble finding train connections...

I jwould stay in Bamberg [in a heart beat] and train into Nurnberg. My impression: The Nurnberg market is HUGE, the Bamberg market is BIG. Depending on what you "mission" is that can be good or bad. If you are a shopper who hopes to see as wide a range of items for sale, then Nurnberg is the place and Bamberg is not far behind. If you are looking for the "collegial" apects of the markets then I suggest you go to smaller towns. My favorites are Michelstadt and Bad Wimpfen. In my opinion, every Christmas market is good. Some just seem to fit my taste better than others. But then, I am not noted for my taste! [

We did exactly that a couple of years ago. We stayed in a lovely little town called Altdorf, 30 minutes by train from Nuernberg. The hotel we stayed in had fairly modern rooms but a lovely old restaurant :www.alte-nagelschmiede.de Then the rooms were Euros 79 for a double room. The Christmas market is big but not impossibly so. Take a trip round the market on the horse drawn post coach. The town doesn't have its own Christmas market but it looked interesting anyway.