Gentlemen seem to prefer that traveling ladies stay in either the Arboretum area or downtown. (Be aware that parking can be fairly expensive for downtown hotels, so check that out when you're booking.)
Staying downtown would afford you the luxury of being able to walk from your hotel to multiple restaurants, bars and shops. I'm a downtown girl, so I'll stick with what I know.
For restaurants, check out Home Slice, Wink, Haddington's, Hop Doddy, Leaf, La Condesa, Taverna, Cru, Kenichi, Manuel's, Justine's, The Belmont, Threadgill's, Delish, Counter Cafe and the Whole Foods on 6th and Lamar. We also have some incredible local trailer food vendors scattered around downtown, South Congress, South 1st and South Lamar (just south of downtown.)
For bars/live music venues, it kind of depends on what type of music you like, but check out Belmont/Dakota Lounge, Dogwood (Dogwood also has excellent food in the evenings), The Cloak Room (where all of the legislators hang out), Elephant Room (nightly jazz in a basement club - get there early to find a seat!) and the W Hotel (main lounge is pretty cool). If there is an event going on at ACL Live while you're here, you might be able to find tickets just by hanging outside the Moody Theater entrance at the W a couple hours before showtime. Tuesday and Thursday nights at Union Park on W 6th are a lot of fun (Muther-Effing Bingo and Gong Karaoke, respectively.) You can also find a slew of amazing local bands nightly at Antone's, Saxon Pub, & Continental Club.
It should be hot while you're here, so think about taking a kayak or canoe out on Town Lake, and watch the bats leave the Congress Bridge around sunset. Catch a movie at the Alamo Drafthouse and try the Guinness Milkshake. If you want to pamper yourself, Milk + Honey Spa downtown is my fave, but I also have a great masseuse that will do outcalls for $50/hour. (PM me if you'd like his info). Also check out
The Chronicle and
Do512.com for info on daily happenings in Austin.