European Roadtrip - Where to stay in Venice?

[Bad Sir Culation]

Hi all, I've finally talked my partner into a Euro roadtrip next year in the MR2 Turbo. She really wants us to go and see Venice, so we're going to spend 2 nights there in a hotel. Problem is, knowing very little about Venice other than that it has canals (!!!), where on earth should I be looking to stay? Can I get the car into Venice or should it be left somwhere else for two days?

I looked it over on Google maps, but found it broken up into different bits, and had no idea which part contains anything that's worth seeing/experiencing.

This is the initial route I've decided upon, if anyone is interested:
http://g.co/maps/g5r3h

Cheers folks

[Bad Sir Culation]

Cheers guys, very helpful