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Given the dates and circumstances of your visit, I suggest staying at Mandalay Bay, the Hard Rock or Caesar's, assuming that they fit into your budget. I've picked those three because they all have great pools. Only so much time can be spent at the tables or shows, and pools, in my opinion, are an underappreciated amenity. If those don't fit into your budget, think about when your prime pool-time will be (morning or afternoon) and plan accordingly. The Strip runs north/south, so the pools on either side tend to be shaded by buildings part of the day.
If you're looking for a good spot to relax, have a few drinks and all be together, try a sports book. I'm partial to the one at the Bellagio, but if you're gambling on an event being televised, you can watch it and get comped drinks (and also order food). Under the circumstances, though, that might not be in the cards.
Despite what Spec says, parts of downtown are ok, specifically Fremont St. That's where all the older casinos are, and they have "roofed" the street with a screen that has a show I think every half hour. It's pretty neat. But if you're not going to Fremont Street, stay away from downtown.
The Stratosphere (the space needle-looking hotel) has amusement rides, etc. on the roof, but it's $10 (the last time I was there) to get up there, and a bit touristy. It's also getting towards the bad part and is isolated, so I advise staying away. Sorry, Fozlid, I just don't think that it's worth the price.
Ditto on the car suggestion that Fozlid made. If you're planning on going to a hotel on the other end of the Strip, cab lines can be a half hour long. That said, Vegas has really been cracking down on drinking and driving, so be careful.
The good free shows are the Bellagio water show, the TI pirate show, the Mirage volcano and the ambiance in the Venitian. The Rio also has a bar with a 1 drink minimum on their west roof that is great to watch the city and Strip at night. The clientele tends to be a bit older (mid-30s). Depending on when you go, though, you may need to make a reservation.
The cool night clubs are in the Mandalay and the MGM (in my experience).
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