We loved just about everything about Gatlinburg. There are plenty of hotels/motels in Pigeon Forge & Sevierville that run about a night, even in high season. Great Smoky Mts. is one of the few free national parks in the US, and Gatlinburg is a wonderful town to poke through (though it is filled with Ripley's museums!)
Quick Tips:
When you arrive, stop at the visitor's center and pick up the various coupon books available in the display racks. You will safe some significant money using the coupons available (in 6 days, we estimated we saved over using the coupons).
If you have a family or are going with friends (or want a romantic vacation), I HIGHLY suggest renting a cabin. There are lots of cabin rental places and you can easily get a 2 bedroom, fully furnished (including hot tub, jacuzzi, full kitchen, washer, dryer, two bathrooms, everything you need) cabin for about - a night.
If you're on more of a budget, check out any of the motels in the area - the Microtels are rumored to be great deals.
Best Way To Get Around:
You'll need a car to get to the area and to see the Nat'l park, though you can easily poke around Gatlinburg itself on foot. Most people either drive in, or fly in to Knoxville and rent a car.