I've lived in the 'burbs of NOLA all my life. I never plan on leaving. Its the greatest city in the world
Uptown/garden district is a nice area to stay. Parking is a bitch, though. But, you are right on the streetcar line.
I stayed in a hotel in the Quarter, but can't remember the name of it for the life of me...It was adequate but not overly fancy.
As for food, if you're looking for Cajun, you'll have to go to (shudder) Lafayette. New Orleans is french and Creole. (FYI - calling someone Cajun is an insult - we don't think of them as the brightest of people...Adam Sandler wasn't too far off...)
Hint: If you'll be there during the week, hit Commander's Palace for lunch. Its a New Orleans legend, and they have lunch specials starting at 13.99 during the week. Amazing food.
For cheap, good food, Cafe Maspero right accross from the Jax Brewery is a can't miss. Amazing fried ham and cheese sandwiches. Also try to get a Mufaletta from Central Grocery.
The bars on bourbon are oh-so-touristy, but I love Pat O's piano bar. A great time.
PM or email me if you have any more questions.