We were lucky to be able to share their experience back in Oct 2011
We stayed here http://www.allavitedorata.com/ - it was right on the canal and only had 3 rooms and it was lovely.
We were fortunate to have our own personal tour guide (my best friend's husband) so getting around was easy.
We had a lovely pizza sat outside @ this hotel when we arrived http://www.hotelmalibran.com/restaurant.html and returned again one night for a 3 course meal with a litre of local fizz for about £70 for the four of us (who says Venice is expensive ?) Yes if you want to sit looking at the Rialto Bridge but get off the beaten track and there are some real gems to be found.
We decided not to go on a gondola - as you don't travel far in 30 mins and it is quite expensive
instead we chose the water taxi for a fraction of the cost we went right round Venice and down the grand canal which took us about 2 hours a great way to see the city.
Even though it rained on our visit we still had an amazing time this is St Mark's Square when it started to flood, the water was coming up through the pavement !!
Don't be put off by people saying "Venice is expensive" just keep away from the tourist traps and you can get a glass of wine for less than 2 euros !!