Several questions accomodation and time alloments.

Padova is 30 minutes from Venice on a regionale train - a destination in itself for the fabulous frescoes by Giotto in the Scrovegni Chapel.

I know Venice is expensive (there's a reason), but the best way to ensure that you DON'T enjoy Venice is to stay somewhere else and daytrip in. Depending on the time of year you will be there, you could find some decent accommodation not too far above your high end. Just don't stay near the train station. That's a horrible part of Venice.

I don't know what you mean by "good" spot, but Venezia Mestre is "a spot" to overnight and day trip to Venice that's not as expensive as Venice is. It's across the bridge, just minutes by train from the "real" Venice. If by "good" you mean "quaint and pretty", then that Mestre ain't.

sundance, There's a range of accommodations in Varenna. A few suggestions...... > Albergo Milano (very popular and often booked - I haven't checked recently buy may be over your price limit) > Albergo Olivedo (older hotel by the Ferry dock - they also manage a Villa next door) > Eremo Gaudio (up the hill above town, so great views, although more work to get to) > Orange House B&B (in your price range but some people have reported difficulty contacting them) > Hotel Royal Victoria (in the centre of town, across from the Church - on the "posh" end of the pricing scale but VERY nice) > Villa Cipressi (near Hotel Royal Victoria - also tends to be a bit "posh) You'll have to check the websites for each of the hotels to see which ones appeal to you (and more importantly, which one you can find a vacancy in)! Regarding getting there by train, I can't recall where you'll be travelling from? You'll change trains at Milano Centrale and take the Regionale to Varenna-Esino (it's on the same line as Tirano). DON'T forget to validate your ticket prior to boarding the train on the day of travel, or you'll risk a hefty fine which will be collected on the spot! Regarding a place to stay in Venice, the previous suggestions are good. Padova is a bit further out but it's certainly an option. If you don't plan on spending a lot of time in the Hotel, Mestre is also something to consider. That would make it easier to enjoy the evenings in Venice, as it wouldn't take long to get back to your hotel. It seems like somewhat of an "industrial" area so not as much character as Venice. I vaguely recall that there were some cheaper hotels closer to Venezia Santa Lucia station, but I'd have to do some checking. Happy travels!

If you are flexible and fairly self sufficient, you could stay in a well located convent in Venice for about 50-60 E per person, including breakfast. The one I like is directly across the Grand Canal from San Marco, 100 yards from Salute. This is one of the most expensive areas in Venice; the hotel directly across from the convent started around 400 E. Rooms are single and simple, no English spoken, no TV/radio/internet, and obviously no concierge. You also need to be willing to live with their curfew. You can either book directly with convents (using email and Google translate) or book through monasterystays.com, which will provide instructions, etc, in English.