If you'd like to partake of the wonderful je ne sais quoi that our fair city has, I highly recommend staying in the downtown area - walking to where you'd like to, and just experience what Central Austin has to offer. You will be delighted.
The Driskill, Omni, Hilton are all fine and dandy, but - for some true Austin Flavor, don't forget the San Jose and The Austin Motel!
When I lived in Fort Worth and came down, I would stay at the Habitat Suites. Its quiet, very private, upscale, and I was able to negotiate a rate. A fairly classy topless place is next door. A mall is across the road. Very centrally located and easy to get too.