I’m helping out with BarCamp Minneapolis, a.k.a. MinneBar, which takes place on May 7th. The event takes place at Best Buy’s headquarters out in Richfield, and we out-of-towner helper-outers are staying downtown. If you know any good and reasonably-priced hotels in an interesting but not sketchy part of downtown, please let me know in the comments or drop me an email!
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I stayed at the Radisson Plaza downtown (35 South Seventh St) in 2009. Don't know how it stacks up now, but then it was reasonably priced, easy to get and very central.
Downtown isn't really all that big, and most of the hotels are close to the "interesting" parts (i.e. Nicollet {pronounced "nick'-let" or "nick-uh'-let"}, First Ave, etc). Unfortunately I don't know that "reasonably-priced" fits in those search parameters. Drop me a line if you want to vet specifics before you make a reservation...
The Aloft is pretty cool. Nice bar in the hotel, near fun stuff, too.
Ran across http://airbnb.com recently. Might be worth a go.