Venice - what area to stay

First, Venice doesn't really have "bad" areas to stay, except perhaps right near the train station (it's scruffier than the rest of the city). And, it's not too large. So, if you find an apartment that meets your needs, don't worry too much about location (as long as it's in Venice proper, not Lido, Giudecca, mainland, or elsewhere). That said, the Rialto Bridge, San Marco, and the route between them is literally the beaten path - a huge percentage of the tourists in town are there. So, an apartment anywhere else will be less hectic and give you a better impression of Venice. You may even see some Venetians, or at least stores that cater to them. When I stayed in Dorsoduro, I saw a store selling socks (not shoes - just socks) and one refilling printer ink cartridges. And the streets were often deserted or nearly so, until I got closer to the Accademia, Peggy Guggenheim Museum, etc.

We haven't been yet, but next summer we are renting an apartment in Dorsoduro. The reviews all talked about how nice it was to get away from the crowds and blend into local life there. Kim

Near the station is not bad either. The ghetto area in Cannaregio and Santa Croce are nice. The worst part of Venice is in the mainland, particularly Porto Marghera. Of the old Venice area I would avoid only the Giudecca, more because of logistics, being isolated, than anything else. When I was living in Italy I used to go to Venice every year for Carnevale and always stayed in Dorsoduro, which is less hectic (you need that at Carnevale). Santa Croce, near the University, is another area I liked (few tourists there also).
Avoid staying in the island of San Michele. Accommodations there are cramped and the residents there are kind of stiff :-)

In case you didn't get Roberto's reference: San Michele is the cemetery island. While accommodations there are undesirable for the living, do try to visit. I found it fascinating. But, if it's a sunny day, bring an umbrella, as there is no shade and it gets hot.

Another thumbs up for the Dorsoduro , for all the above mentioned reasons . Some of the permanent residents of San Michele include Igor Stravinsky , Serge Diaghilev and Ezra Pound . You can combine San Michele with two other islands , Murano ,known for the glass , and quite interesting on many counts , and Burano , known for lace , but more importantly for the lovely pastel fisherman's houses off the main drag . Watch the 1955 movie " Summertime " to get a good sense of what to look forward to in Venice !