We could go down to the harbor.

One good reason to go to Newport: By now, the store at left is probably closed, so you won't have to encounter the scary mannequins. Two more: Glitz and chowder. The glitz is found at the mansion tours (the Marble House is especially gaudy and fantastic.) The chowder is found anywhere near the harbor.

Thames Street is the only place to stay, and I say that with complete knowledge that Middletown is totally convenient and far cheaper. But the nightlife there consists of a Chili's and a Walgreen's, so stick with downtown Newport. I would sleep at the Red Parrot if they let me, but it's not a hotel, so they won't. The grand Hotel Viking, a few blocks off the harbor, will. (If you go to their webpage, turn the volume down or you'll regret it.) Their rack rates are $300 and up, but you can usually find rooms on Expedia for less than $200. If you're not having luck, try the nearby America's Cup Inn -- rooms are $179. A lot of them suffer from a serious case of ugly, but Room 305 lacks the floor-to-ceiling floral effect.