It completely depends on what you come here for, really. If you want to see the sights, we're full of them:
Statue of Liberty/Ellis Island is a nice day excursion (or half day if you are a power-tourist)
Times Square is ok, IMO, but it's really just a lot of big stores with flashy signs. (I work in the area so I'm a little jaded) Madame Toussaud's is cool, but kind of expensive for what will likely be just an hour or two visit. If you have kids, they will like seeing MTV and if you are here during TRL time, you can look in the windows and see the stars.
The museums are, of course, amazing. The various art museums speak for themselves, of course (if you just want to do one, go to the Met), but also check out things like the Natural History Museum, the Hayden Planetarium, etc.
Empire State Building is cool (actually underwhelming in person unless you don't see skyscrapers all that often - it's big, but not "HOLY SHIT!" big). Take a trip to the roof so you can say you did, but note that it is also pretty expensive.
The various cathedrals are impressive, as all cathedrals are.
The Intrepid is neat, too. And now it has a concord parked next to it.
Beyond the sights, here are some ideas.
Take a boat trip around Manhattan if you can.
Also, don't overlook the boroughs. Especially Brooklyn. Walk across the Brooklyn Bridge to get there.
The Ringling Brothers circus will be in town when you are here, so consider seeing them
Take in a show, but don't get suckered into the big dumb ones. Use the TCKTS booth in Times Square.
Go to the village just to wander around.
Ditto for Chinatown. Eat there. See the department stores - everything's cheap, some of it's quality.
You might want to go through Harlem so you can say you did.
Take a walk in Central Park - go to the Lawn and marvel at the tall building surrounding this field.
Go over to the East Side in the 60s-90s on Park Ave and the environs to see how the other half live.
Don't spend too much time downtown except on your way to something else. It's boring.
Ground Zero: a lot of people come here with the idea that they have to take a viewing. Ok, that's fine, but be prepared to be underwhelmed. It's really just a big construction site now. Don't spend more than 20 minutes there.
Don't buy NYPD or FDNY gear on the street or in the tourist trap shops. Go to the official sources (the FDNY official store is near Radio City)
Go to Coney Island. It's probably still mostly closed, but you can tell your friends you went to the Boardwalk. Ride the cyclone if you can, and take cool pictures of rusted, overgrown roller coasters.
If you like music, go to a rock club. CBGB's is still open (I think).
Where to stay is up to your budget. There's something to be said for splurging on one of the great old 5 star hotels in NYC if you can afford it.
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