Dalzini,
With regards to where to stay... it really depends on whether price is an issue? If you are plan on sharing a room then obviously the costs come down considerably.
I stayed at the Gold Coast last year (because price was an issue!!) and I was very happy with it... indeed I'm doing the same again this year.
It's about a 300yd walk from the GC to the Rio... and then twice that distance once inside the Rio to get to the WSOP area!!
As AndrewT said getting to and from the strip is not problem, or expensive. As well as the free shuttle from the Rio, there is also a free shuttle between the GC and Barbary Coast (at the junction of Flamingo and the Strip)... a taxi from the GC to the Venetian was about $8... there are a steady stream of taxis in and out of the hotels.
You have to rember that Vegas is used to catering for tens of thousands of conventioners at any one time... even the 10000 or so poker players arriving for the Main Event is no big thing for Vegas... the WSOP is just something that happens in a few rooms at the back of the Rio, the rest of Vegas just carries on as normal (not sure normal and Vegas belong in the same sentence??)
Take a look at -
http://local.live.com/default.aspx?v=2&cp=36.114659~-115.172907&style=h&lvl=16&tilt=-90&dir=0&alt=-1000&scene=5085497 - I found this tool excellent for 'finding my way around' before my visit.
Pan left along E Flamingo Rd to find the Rio, GC and the Palms.
Hope this helps,
Alan