We will be spending 2 or 3 days in Prague as part of a longer trip and will have a hire car. Have heard Prague is very busy and not too keen to drive within the city, so what do we do with the car? One option we have considered is parking the car at the airport and staying in the heart of the city. An alternative is stay further out (residential area with car park) and travel in each day on public transport. Big question is where is a convenient location for this? (Will probably be staying in an apartment, but will consider a hotel). Has anyone else done Prague with a car to worry about?

We had the same dilemma. We stayed at the Hotel Svornost (do an internet search)for around 60 euro with free, secured parking and breakfast. It was like an old "post hotel", but very nice for the money. The train into Prague was a safe neighborhood 2 block away.

Try the Hilton Hotel, easy to get to and a secure carpark, and a short taxi or tram to the centre.

I've only stayed in the city center, and didn't have a car, so I'm not an expert on this. However, I think a good place to look might be near the Vysehrad metro stop, which is just a couple stops south of the main center of Prague. There are several large modern hotels there (I think there are businesses and some business conventions around there), so I think there are good facilities and it's also a nice area near the river and an historic area that is worth touring (the Vysehrad church, cemetery and park).

This is one example of a hotel in that area which has parking
http://www.hotelvysehrad.cz/

Thanks - I'll look into these further. Initial investigation of Hotel Svornost looks promising.