I went to NYC for a week – you are never going to be in a place where you can walk everywhere. I’d agree that staying in midtown is daft, its not a nice place to be IMHO but people think because it near some of the big name places you have to stay there.
We stayed here when we went: http://www.bblodges.com/. They are basically small flats with a kitchenette – ours had a balcony but we didn’t use it as in June its very stuffy outside and by the time we got home in the evening we just wanted the air-con goodness!
The price seems to be very low for manhattan (£1k for the week) but we thought it was a fantastic place to stay for the week. Its in Spanish harlem which is just up from Upper East side – its basically a residential area and was quite nice I thought. All sorts of people live there. It was 1 block from the subway which was very handy – the subway stations are not as close together as London so it pays to be near one. There was a few shops and places to eat nearby (Barking Dog we used for breakfast a couple of times which was ace).Close to Central park/museum mile which was really nice.
Make sure you plan your week, make a list of places you want to go to and make a rough plan for each day. Don’t try to do too much in a day or you will be burnt out very quickly. What we did was get a subway to a certain area each day and walk around the area visiting the places we wanted to and maybe end up in another area to get the subway back home. A few times we ended up walking from or to the flat anyway as we could go through central park or Upper east side on the way home.
Bear in mind it can take a while to get somewhere in Manhattan even on the tube so walking everywhere isn’t a sustainable option every day!