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Vienna - stay near train station or Innere Stadt?

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We will be arriving at Vienna by train from Prague in May 2014. It is not clear which station we would be arriving at since there is a lot of info about the station renovations in Vienna. If I didn't have a budget I would not care where we stayed, but I like to stay around $200 or less a night and spend my money on activities. During our 2 day stay, I want to see the old town area, enjoy coffee and pastry at a café while just enjoying the atmosphere, take in a concert/waltz and if time allows, visit a wine garden.

Hard to look at a map to determine how easy it is to get around so I am looking for suggestions based on your experience. I have spent a ton of time trying to figure this one out through the internet and feel more confused than anything. Should we look at hotels near train station or Innere Stadt? love small locally owned B&B and hotels, but not opposed to larger hotel as we have plenty of planned stays at small hotels during our entire trip.

Gratefull for any help!

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