We'll be stopping in that vicinity on our way to Ft. Lauderdale and I'd like to stay someplace close to town activities but also near water. Is this possible? What do you recommend?

Amelia is about 2 hours North of St. Augustine; although you will be able to stay in a nicer beachfront hotel in Amelia, St. Aug is closer to Ft. Laud, obviously. You can stay on the beach in St. Aug, but it won't be classy digs.

Julie,

As roadtripper says, St Aug. and Amelia Is. are 2 hours apart. St.A is considerably bigger than Amelia's town of Fernadina
What type of price range are you in per night?
Some thoughts on Amelia Island. You have the resort including the Ritz are on the Beach side. Elizabeth Pointe Lodge(Upscale B&B)Oceanfront not in the actual resort area.
The town, historic section, Fernadina is on the Intracoastal side of the Island, about 1.5 mi-3mi wide.
Intracoastal waterfront would probably be something like a historic style Hampton Inn $119-179. The Florida Inn originally a Railroad Bunk House is neat, quaint restaurant and bar included about $89 - 175 up. It's right off Main Street...& I think 4th.
Inexpensive sleep would be the Hampton Inn on the road coming into the
Amelia Is. about $69 a night. Not really the walkable area per se, in a quaint atmosphere kind of way.
For St.Aug there is a beautiful bayfront. A large fort, a walk along the
bay, historic Bridge of Lions, many B&B's, condos on the beach. I'm sure there are hotel on the beach...none come to mind at this time. They light the central park with lights for December. Some bayfront B&B's there is Casa de la paz(busy area, close to everything), Westcott Inn(beautiful veranda-view of the bay, bridge, the lighthouse). There is a Hampton Inn at Vilano Beach, N of St Aug. right across the bridge...it was $79 a night. New so it's looking for business, not really a walkable area. The restaurant right across from the Hampton Inn @ Vilano Beach, Fiddlers Green is a favorite of locals. Anastasia Island is part of St.Aug-the lighthouse and St.Aug beach are on the island.
I was looking for a place for a family to stay recently and did the B&B tour of both towns this month. There are hotels on Anatasia Island which is the beach section of St Aug...none come to mind.
To get water and a walkable historic section they are on the intracoastal sides...bayfront. St Augustine will have more activity.
I'll try to answer any questions you have. I live in Jacksonville.
Sylvia

Thanks, Sylvia. You've provided a wealth of information. We're pretty eclectic in our tastes and are willing to pay a little or a lot for lodging depending on what we get for the dollar. Rooms in the $75 to 175 range for this area sound right to me. I'll digest your info, check out your recs with a map in hand and add questions to this thread if I have any. Thanks for the info and the offer of more help.

Julie, I have stayed in both places and St augustine has much more to offer and some great places to stay. Check out the new Casa Monica hotel, they have a website but not sure of URL. Also dozens of great Inns and B&B's. Check the website www.oldcity.com and look for accomodations. All the Inns have websites with room desc. and rates. Check it out.