I think St. Augustine is pretty charming and the hotels are very nice and inexpensive. I can pass along information of the hotel I stayed in which I absolutely adored. Here's some quick info for you to look at:
http://www.floridashistoriccoast.com...aid%252BSearch
Another great thing about St. Augustine is that it's only approximately 100 miles away from Orlando which has GREAT theme parks. Disney World has so many different parks you can visit. There's also Universal Studios and Islands of Adventure (which has the NEW Harry Potter theme park!!)