The best way to do Cedar Point is to stay on property at Breakers. I've tried staying at surrounding hotels, but have just always felt it's better to stay on property. Being only a minute walk from the park is worth every penny. The Fairfield Inn is pretty nice though in Sandusky. (about $100 a night)
I went with some friends last summer, and we were able to do the whole trip for only about $100 a person plus food. We also drove though (I used to live only 5 hours away) which saves money.
The best advice I can give is to go during the week early in the season. We went and got a special mid-week deal on the hotel room for 2 nights and it came bundled with tickets and everything. We hardly waited in line for anything and got to ride most rides 2-3 times.
I checked and doesn't look like the rates are out yet for Breakers, but I strongly suggest it. Early admission is included, which is a great perk.