Santa Monica is a good area to start. I spent most of last summer in LA staying in a hotels and found that alot of the hotels are fairly standard - standard being that they're kinda like Jurys Inns but have pools, gyms etc.
There are a number of fancy hotels (like The Wilshire on Hollywood boulevard ..pretty woman hotel) that'd be 5*, and a number of boutique hotels have started cropping up.
The basic rule is, the closer you are to the beach, the most expensive the accom becomes.
*Some* restaurant do charge alot, but like anywhere theres loads of choice and 250 is definately not the norm!! You can have a great meal for two for $40/50!
Around 3rd street prom in Santa Monica is a lively area to be close to. Its within walking distance of the pier which has a fun fair and stalls on it, and you can rent bikes to cycle down to Muscle beach etc
If i recall correctly, Aneheim is where Disney and Paramount are. Its inland from the beach.
Whatever you do, make sure you rent a car! Very important in LA - its vast! When you're flying in, you're fly for 20/30 mins over the suburbs before you come close to the airport!!!
All in, I'd say LA is a very interesting place, but if I had a 2 week honey moon, I wouldn't spend more than 3 maybe 4 days there to do the sights like Graussmans theatre, the beaches, etc etc....
Remember, Vegas is only a 4 hour drive away!
PM me if you've any questions
I have a guide book here somewhere, that i'll dig out for hotel recommendations