You want to stay south of the Mall on Highway 1 for housing, or look in Leland or Stoneville. Those towns are about 10-15 miles to the east of Greenville. As far as hotels, there is a really nice Holiday Inn Express on 82 just as you come into town from the East; it's very clean, reasonably priced, and you'll be able to do brain surgery the next day..
There is also the Greenville Inn which is in the old Levee Board building right down on the levee just before you get to the casinos. It's nice, but once you get out of the downtown area its kind of bleh.
There are actually quite a few good places to eat around Washington County: Doe's Eat Place is downtown, has some of the best steaks in America (they just did a feature on them in the NY Times); there is a place called The Bourbon Mall - it's out in the country a ways, but worth the drive, they have a great menu, great steaks, two bars, and a dance floor that is hopping on the weekends; and a new restaurant off of 82 called Posecai's - the chef there trained at Brigten's in New Orleans and the food is EXCELLENT.