recommendation of where to stay on Mont. St. Michel?

your 1st choice is whether to stay on MSM itself or just across the bridge. I stayed in a hotel across the bridge; there are frequent shuttles over the bridge, even relatively late at nite. By staying across the bridge you get to see it lit up at night which is beautiful! And you can park in right in front of your hotel in their lot. If you stay on MSM you have to park in a portion of the same lot that the day visitors use and take the shuttle with your luggage.

That all said, the hotel I stayed (Le Relais du Roy) at was nothing special. They have you on location, so the rooms sell themselves. It wasn't bad and was clean, but felt a bit dated compared to other hotel rooms I stayed at in France. On the other hand their attached restaurant was one of the best meals I had in France!

The island only has 8 small hotels, owned by just a couple of families. Rick's France guidebook describes 5 of these (3 which are under the same management) that he feels give the best value.

I stayed in a hostel near Cancale, about a 30 minute drive from MSM. It overlooks the bay and has a 60's hippie feel to it (chicken coops on the side), but friendly people and decent place. Normally rooms for couples are better at small hotels but in France, particularly near major tourist areas, hostels seem to offer a pretty significant cost savings.