I actually say Tropicana. It's dirt cheap and decent rooms. Nice pools with decent shows and buffet too. San Remo with cheap ass food ($5 for steak n eggs or prime rib) is down the block too.
Tropicana isn't where you'd spend most of your time, but it is definetly in about the best location on the strip. MGM Grand (with clubs Studio 54 and Tabu, nice casino), NYNY (with Coyote Ugly, a nice pub, and ESPN Zone), and Excalibur are all right on the same corner as Tropicana and all 1min away from eachother. Excalibur is nothing great, but there's a free tram there to go to the Luxor (club Ra, nice casino) and Mandalay Bay (Rum Jungle... best Vegas club IMO). Tropicana basically just saves you tons of time walking and/or cab $.
Palms hotel with club Rain and the Ghost skybar is a definetly a taxi ride from anywhere on the strip, so either just stay there or pay $$$ for travel unless you bring or rent a car. I'd rather stay on the strip where you're closer to everything and just visit Palms one or two nights...
If $ is no object, though, then Luxor is where I'd probably stay, but Trop is so close anyways and about half the price... I'd rather spend my $ at the clubs getting girls and gettin drunk than on a nice hotel room and bein broke.