i went to prague 2 years ago on a last minute deal. If u go on a deal u should definately stay in either prague 1 or 2, as it can get really expensive if you go further out if you take taxis.
U should also get your hotel to pre book your taxis before hand as you get a fixed rate and do not have to worry about being ripped off.
There are some great places to eat in the town centre, the best steak can be found in the square in the pub with the tables outside!!!!