I've been several times and love it, and will be back again twice this year (but not in March).

I'd advise staying on the peninsula (Presqu'île) between the two rivers, or in the old town if you can afford it, as the parts east of that are the business/university district and there's less in the way of restaurants, nightlife etc. Having said that, though, the metro and tram systems are very good and you can get to most places quickly. I like the Axotel hotel near Perrache station on the peninsula, but I fear it isn't as cheap as it used to be. As for eating - wander into the old town and see what takes your fancy. Lots of cheap good eats there, particularly if you like pork products :)

If you have time and stamina, go up the hill to the Roman ruins above the old town - they're spectacular.