My $.02
Stay where ever you can get reservations. Lots of good places and most will be close to town. Traffic can be a pain but be paitent and all will ok. Jackson is a small town and you can't miss the climbs since the hill is a double black diamond ski hill and on the edge of town. Lots a places to eat. I recommend getting out of town and trying some of the food places out of town ie Moran junction, south of town by about 10-15 miles., it has a great bbq place with a prime rib if that is your fancy. It is quiet and never a wait.
The hill is a must for the athletic. It is steep and quite a fun time. For the new you must take the chair up once and see the view. You can ride the chair down if that is your choice. For those of us that like the rush, you can always slide down the hill after the races for the day. Shovel to sit on = really fast ride down or you can walk down. NOT A GOOD PLACE FOR SMALL KIDS. I see it every year. The earlier post about dry cloths is a must. It has been sunburn weather for most of the last 12 yrs, but it can change quickly. Warm dry boots with really good ankle support is optimal and snow pants, warm coat and a heavy shirt has been best for me. Bring some snacks and sunscreen. DON"T BOTHER TO BRING BEER since they will check and take it. The standard is to buy a ticket at the bottom of the hill for $8 or 9, this will get one person a one-time ride up the hill on the chair. The third cat-walk is the hell-hole and where most spend the day as you will see from the ride up. The event is 4 days; thur and fri are qualifying for stock, improved stock, all womens, ametuers and semi-pros. Sat is qualifying for the mods and the finals for the womens, ametuers and semipros. This is the first time the upper hill is opened and the need for hillhelp. Sun is the finals for the rest and runs until about 5pm. We have had good luck at staying sun night and heading home on monday morning. The week before and after can be some good time to go riding around the area if you like. There are many rental places around town and Togatee (north of town about an hour or so).
I recommend getting your reservations now since the price only goes up the closer you get to the the hillclimbs. I have stayed at the Motel 6 for many years and it is ok to pile several people in and have fun. It has become a pretty rowdy place in the last couple of years. Many people enjoy the antler because it is walking distance from the hill and downtown. The group of motels in that area are good to party at and sometimes hard to sleep at. Nice places though.
Here is the websites.
http://www.jacksonhole.net/properties/downtown/prop-ai.htm
The website for jackson is this one.
http://www.jacksonhole.com/
these sites should get you started.
Hpe this helps.
John