What is the best area to stay in on Kauai?Any recommendations for a nice but not overly expensive condo?

We stayed in Poipu last April. We liked our condo a lot, we stayed at Nihi Kai Villas which we found through Frommer's. Here is a link to their website: http://www.granthamresorts.com/

We have stayed twice at Pali Ke Kua in Princeville and really enjoyed it.

We just got back from a visit in Kauai and stayed at the Banyan Harbor Resort condo and were very happy with it. Our unit was a 2 bedroom, 1 1/2 bath, 3 balconies for $US85/night. It wasn't right on the beach, but just a short walk across the street was Kalapaki Beach in front of the Marriott.

We have been to Kauai 2 times and we are going back in Febr. First time we stayed in Lihue, it's location was a good half way point for driving the island. Last time we stayed in a condo complexes, SeaLodge, located at Princeville. Prices are very reasonable and the condo's are very nice. Best thing to do is go buy a "Hawaii" Mag. and look in the back and you will find alot of condo rentals. That is how I found this last one. In Febr. we are staying at the SeaLodge again. We love the North shore, it's true Paradise. Most of the condo's here sit on a bluff and have a great view of the ocean. If you want to have a condo on the beach, Look at Kapa'a or Po'ipu. Good Luck and have a great time.