I'm thinking of staying at Hotel Santa Lucia. It is very inexpensive and does have AC. Has anyone stayed there? I just realized it is right by the train station, which Rick recommended staying away from...but he did include this as a place to stay in his book. Is staying near the train station inconvenient for exploring Venice? I just want to make sure I'm safe going and coming and that it's in a location convenient for getting around. How long of a walk is it from the train station to "the action" in Venice?
Giudecca is inconvenient. Venice is very compact, so as long as you're on the island proper you'll be fine. Do consider getting a vaporetto pass if you think you'll be riding it more than twice a day.
Hotel Santa Lucia is fine. It's close to the train station which means you won't have to drag your bags all over Venice getting to your hotel.
I liked it a lot, for what it is - a very basic budget hotel. The rooms are larger than most hotels have in Venice and they have AC. It's away by itself on a small street (alleyway, really) off of the Lista de Spagna, the street Rick doesn't like. There's a great little coffee bar halfway between the Lista de Spagna and the hotel. The hotel has a breakfast garden in front, which is unusual, and there's a nice little park hidden behind the hotel. The rooms are unusually clean and bright. The location is about a 20-30 minute walk or a vaporetto ride from San Marco, but on the other hand close to residential neighborhoods in the Canareggio. I recommend it unhesitatingly.