Whats your budget???? Lots of nice places to stay. Just got back last week...had a blast.
Feel free to PM me if you want more info

As mentioned, there are nice places from U$6- U$200 both on the beach, both clean and secure(some more than others). If you feel like lashing out, try the Mui Ne Sailing Club(easy to find on net)U$65-120ish...very nice, day spa for the wife, good bar and food(if it was in any other country, it would be U$300-500). Or there's a place next to it,forgot the name, great value for around U$20-30, feels like it should cost heaps more, private bunglow, sate tv, AC, very clean, safe etc etc then just use the Sailing Club facilities. Its a bit from center of town (2km or 80cents on a moto and debatably the nicer end of town)....however there really is no center of town. It's also closer to the sth point, where a nice right hander can peel off. If you need more info, contact Cambell and Scott at Airwaves (Kite school and shop) Top guy's, will help you out with any info(and maybe show you some secret spots). Say G'day for me....had some great sessions with them last week
There is a heap of new resorts gone up in the last year, maybe book a place for a day or two, and then wander up the road a check it out. You'll be surprised at the prices after you see what you get...all good
As I said, depends on budget, however easy to live like a king reasonably cheap, or live well for U$20 a day.

we have booked the sailimng club for the new year for 2 weeks, staying in a beach front bungalow , 120us a night , did allot of reasearch and this came up every time, any other info would be good , i don't know much about the place , taking a 9 and 13m, its meant to blow wild there

MC, you will enjoy the Sailing Club, basically just get there and work it out, not alot to do beside kite, drink, eat, relax. There's a few touristy things around, either get a bus to Mui Ne in the mornings(asked to be dropped off there), or if your flight gets in morning onwards, and you want to go directly, taxi cost around U$60, its 4-5 hours on bus however only 200km's. 9 +13 should be good, unless it goes 35kn+, which apparantly happens.
Twostep, I think gear was around U$100+ a day or U$500????? for a week and then insurance if you wanted. Didn't look a lot into it,Think they rent kites such as SS Fuels from Airwaves(at least thats what I saw them teaching on), and maybe other places had different kit's.

we had great wind Xmas - new year...

I never thought, but should have taken my wave board too. Many spots. Dangerously narrow beach.

We stayed further up north at "Mui Ne California hotel"... very nice too... we found half moon to be relatively expensive compared to the rest. Must say the restaurant just next to "half moon/Jibes" kicks ass... family run, plastic chairs, but the most insane juices (8000 VD) and DO try the Tamarind Prawn or Tamarind Crab (~ AU$6)

There are many accommodation options...
We had the taxi drop our stuff off, and then walked around to a few places before we moved in. We paid US$42 for a two beds bedroom (We were three) including breakfast.

And hundreds of kiting options..

PS the red sand dunes are a disappointment and so is most of the things they offer on the "tour"... The white sand dunes are ok, and worthwhile for the sunrise.

a few pics:
http://picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015816112012405778
(see the swell size... it started dropping off)

picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015816142077176866
(Narrow Beach)

picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015816859336715570
Perfect little waves (about 3 ft!)

picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015821841498780754
Hotel California Mui Ne

picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015822000412570770
The view from the tanning chair...

The waves are mostly smallish... I did a few long down-winders and the fair back 5km is about 40,000 VD (approx AU$5.50)

Note that a US Kiting mag just ran Vietnam as a kiting paradise, so expect even more people arriving soon (Heavy Euro presence & Russian)

and only the russians kite in Speedo's!!!
picasaweb.google.com.au/DesiPhoto/06VietnamJoAnneCoertAndDesi/photo#5015821446361789378