My husband and I stayed at The Blue Tang Inn in Jan. 2004 and are going back to the Blue Tang Inn 29 Jan-13 Feb. 2005. Wouldn't stay anywhere else. Fanny is so good to all of us and it feels kinda like home. Close enough to walk anywhere in town and to get back safely after several rum punch drink at Fidos.
Just depends on how close to town you want to be or how close you don't want to be. But no matter what you decide, you will have a wonderful time.
The view on the flight from Belize City to San Pedro is a must see. Plus the flight is so much quicker.
Hope you have a great time!!!!