A beautifully shabby-chic double shotgun tucked away in a quiet residential section of the city, only a two-block walk from the fairgrounds and JazzFest (unfortunately, the walk to the festival is more like four blocks to the only entrance gate on Esplinade, but exits are everywhere). If it's crowds you crave, the action of Bourbon St. is only a short $10.00 cab ride away.
This comfortable house is spacious enough accommodate quite a crowd for afterparties, etc, although noise must be kept down after 11:00 PM. Parking is sparse, so car-pooling is a must if your group is large. We spent ten days there during JazzFest '06, and at $102.00 a day, this may be the best deal in town.
A pink hotel it ain't, and service is nonexistent. It's classified a B&B, but breakfast is self-performed in the full kitchen at the rear.
The second floor was undergoing repair/renovation at the time (five months after Hurricane K), but I did manage to slip up to the rear balcony overlooking the lovely garden, to a great location for sitting and listening to all the music we couldn't see in person (the main stage is on a direct line, well within earshot).
I don't know of any world-class restaurants nearby, but if you want to try eating like the locals do, a pleasant two-block walk down Rue St. John will take you to a small local Party Store/Deli (with it's obligatory double screen door), where you'll find some of the most authentic New Orleans fare around. Just strut to the rear of the place, where they keep their grill, and order your favorite flavor of Po'Boy, dressed, and a side of Beans & Rice. When you sink your chops into 'em, you'll think you've stepped into Heaven.
Overall, if you're looking for fancy, look elsewhere, but for good ol' down-home flavor of the real Circle City, this place can't be beat.