Isle of Wight - where to stay?

[Zippee]

Looking at a short break on the IoW over the August Bank holiday - whats the best town to stay in? I've heard nice things about Shanklin.
Basically we want non-tacky, nice beaches/views, decent pubs/restaurants and tea rooms.
We'll likely travel across from Southampton (heading down from Cambridge way) but again, happy to move that to Portsmouth if people think that's better for any reason.
Also, any recommendations for decent hotels?