We stayed in a cottage that was about 1/2 mile up the hill from the Hard Rock...it was operated by the Greystone Lodge at the Aquarium. If you go to the gatlinburg tourism site, search the lodging and click on the Greystone lodge...it has the option to see the cottages. Ours was a 2 BDR with living room, kitchen, 2 1/2 baths and a nice porch to sit and rock. It was really nice and quiet. We walked to the Hard Rock from the cottage and then hopped the trolley back...from the trolley stop it was only about a 2 block walk to the cottage.
There are several hotels on the main drag in Gatlinburg...the Greystone Lodge looks pretty nice...also the Edgewater, which is a block or two off the main drag...just search the Gatlinburg site and you'll find several. Also, request a brochure from them as it will have a map in it with the trolley stops...easy way to decide where to stay.
And I second eating at the Pancake Pantry! It is the best! Also, if you have a car, drive over to Sevierville and eat at the Apple Barn Farm House...it is fantastic! They have a website you can check out too.
We love Gatlinburg...even DS...it's a great place to really relax. DS loved the go-kart track in Pigeon Forge...it was a wooden track with 4 stories...it was lots of fun!