sizz, sorry i haven't gotten back to you on this sooner. i'll pm you the names of a few hotels this afternoon. i'll also give you my work # in case you want a tour of cbs or the letterman studios. if you know the dates, i'll look into tickets for the show, too.
i just glanced over everyone's posts (way to go mish!), so i hope i'm not just repeating anything. i think you'll want to stay in the in the theater district of midtown, roughly in the 40's on the west side, near broadway or 8th ave..
btw, as stated before, little italy is kinda hard to find. it's been overrun by chinatown. but grand and mott streets north of canal still has a small section, and there are a few decent restaurants left. nothing great, and it's a little overpriced, but it's something to do.
ok, well, i have to go warn the city that you're coming...