Where is the best area to stay in San Diego and in Los Angeles if we want to be within walking distance of clubs, bars, and restaurants? We would like it to be a nice area (classy/quality hotels), not a dangerous section or anything. We would prefer to not have to drive at night if possible. Any suggestions would help - thanks!

Nick, in San Diego,the area with the highest concentration of restaurants, bars and clubs is the Gaslamp District in downtown San Diego. There are quite a few upscale hotels within walking distance.

San Diego: Clarion Bay View in the Gaslamp Quarter is where you want to be. Can't beat the jacuzzi on the roof! :0

LA: Depends where you want to go- Sunset Strip is cool- tons of hotels there.

For San Diego check out the following sites-
http://www.gaslamp.org/lodge.html
http://www.members.home/railharry/sandiego.htm

the gaslamp sounds like what you are looking for although i personally wouldn't want to stay downtown. if you do, you might want to check out the best western that views the harbour. at least you are looking at water. i think the gaslamp is worth a visit for a night or two but i get tired of paying all the cover charges.
pacific beach has some fun restaurants & bars but a younger type crowd.
for classy "more martini" type places, la jolla has a good selection of restaurants/lounges.