We stayed on the East side of the Island in the town of Kapaa at the Kauai Coast Resort at the Beachboy. The resort was beautiful, on the beach, newly remodeled, with a natural waterfall pool. Got a great deal through Travelocity and then got an upgrade from a studio to a 1 bed. w/ washer & dryer & full kitchen without even asking for it. The decor was beautiful and very, very roomy. 1st floor Lanai with a sliding door adjacent to the bedroom and another adjacent to the living room.
Note: Unless you have children or you are on your honeymoon, you will probably be so busy that you will not spend much time in your room. If you are on a budget, save money for activities and go for a less expensive room. Having at least a kitchenette, however, is a good idea, as the prices for food and eating out are slightly steep. If you do shopping upon arrival, join the "club" at the grocery store so that you get "club" prices. This does not cost anything and saves a bundle! Do not "overshop" as you will end up leaving tons behind.
Our Friends stayed at the Plantation Hale across the street. This was a step down from our resort, but very nice and would be great if you have kids and you are on a tight budget. There was a wonderful outdoor shopping and food market called the Coconut Grove and the shops were moderately priced. This was close and fun to walk through. Hula Girl Bar and restaurant was located here and a good place to meet for cocktails. Tradewinds bar was open till 2:00a.m. (the only thing open late, in the area) It was fun pub style, with Karaoke.
Everything is close to this area. The airport is about 10 min. The South end of the Island is about 30-40 min. and the North End is 25min.-1 hour. The canyon is about 1hr. or more. You really need to rent a car when going to Kauai, there is so much to see and it was really fun driving around exploring.
See my other reviews for more about Kauai.