we have two whole weeks to explore this amazing city - our days will be full as we want to see all the main tourist attractions and see some broadway shows, art exhibitions etc
We also want to take time to absorb the city's atmosphere, people watch, food, shopping , fashion etc - a busy and full 2weeks!
Do you think we should break up our trip
and stay one week in the village or downtown and one week mid-town or near central park?
that way we can get a taste of different areas and we can also plan our itineiry so when staying in the village - do more things that are in that area?

If you get a great deal on a hotel - there's really no need to move - why waste the time and effort.

If you want to be in different areas - decide on what you want to see/do and base it on that. Frankly I would do one week downtown and one on the upper wet side - both of which have a lot of good inexpensive restaurants options, many of which have sidewalk cafes you don't find in midtown - and not bother with midtown unless you're going to do a lot of theater.

For what it's worth, I'd spend 11 or 12 days in one place and then treat yourself to some high end place at the end of your trip.

yeah i was thinking of Upper east or west sides - my hubby thinks those areas wont be busy but I like the idea of staying where the locals live!
i like the idea of splurging on some great accommodation but I think splurging on great food and activities might be better for us!
is Mid-town mainly office blocks?
i heard union square is a good area to stay too - lots of shops there?

A few things a week does not allow:

Walks to see residential architecture
Eating at various ethnic restaurants
Cloisters
A trip to Queens to see the various ethnic neighborhoods
Off Broadway, Off-Off Brioadway, Indie fims, and a world of music
Zabar's
A walking tour of food, movie sites, or crime scenes.
A trip to Green-wood Cemetery in Brooklyn
Windowing shopping the independent stores of the city
NY Public Library at Bryant Park
The Frick, Morgan, Cooper-Hewitt, Transit Museums, Neue Gallery.
Washington News

And as Sue suggests we too sometimes stay an expensive hotel for one or two days after spending some time at much much cheaper hotel.

Union Square makes traveling anywhere in Manhattan quite easy.

What people who come to NY for the first time do not realize is that MOST major north/south avenues, except Park above 42nd and Fifth Avenue above 57th (mas or menos) are lined with stores of all stripes.

yeah its hard to imagine what we're going to find/see....ive been there before (1995) for 2 days but stayed in Astoria and only went to the village and my hubby has never been before...

I'm a local and I live on the Upper East Side but if I were visiting I'd stay on the Upper West Side

This is where I like to stay in NYC when I visit. In a neighborhood but near subway, restaurants, walking to lots of places.
http://www.vrbo.com/145694

hi sueNYC - why upper west over east?

thanks Austin - that does look nice! chelsea looks like a great location!

Upper West - more families - restaurants - transportation access is a bit better. I love my East side neighborhood but the hotels are closer to wealthier 5th Ave -- If you are going to spend most of your time doing all the world class museums on 5th then stay on the East side -- You can get to the East side easily from the West side where the hotels are IN the neighborhoods -- West Side transportation is better for the theater -- You can walk, subway or bus home at night - I like busing up the West side after the theater because you hear about what everyone else has seen.

The other nice things about the Upper West Side is you can get a therapist, as it has the highest concentration of therapists in the country.

I can't add much to what's been said. I agree whether to move depends on what deals you can find and perhaps how much stuff you bring/how easy it is for you to move. I'd guess moving will use up a good part of one day. I'd personally rather find one place in an area you like in a place that looks great and fits your budget. The only reason I'd personally consider moving is if your dates/budget prevent you from staying in a place you're sure will be nice. (Hotel prices fluctuate by season and if you're coming say in Dec., rates will be high.) In that case, I'd maybe splurge on a nicer place for a few nights.