I would suggest staying between 15th and 30th St.. The boardwalk runs from the inlet to 27th St. The rides,etc. are located on the inlet or most southern end. But no matter where you stay on the boardwalk you can walk, bike, or hop on the boardwalk tram to get you there. The reason I'm suggesting you stay further north is that you would also be within walking distance to Jolly Roger Amusement Park on 30th St. In addition to rides, they also have a water park, zip line, and go karts for the whole family. There are plenty of restaurants around as well.
Some great places to stay are the Courtyard by Marriott on 15th, The Holiday Inn and Suites on 18th, The Grand Hotel on 21st., the Dunes Motel on 27th St., the Dunes Manor on 29th, or the Spinnaker on 18th St. The Dunes Motel does not have a restaurant inside, but there are definitely enough places within walking distance.
Hope that gives you a start.
Answered: February 06, 2012