To-hell-you-ride! Ahhhhhh. What a great town and mountain. It is the most spectacular scenery in all of Co and this side of Canadian Rockies. The mountain itself is a great mix. Additional terrain was added in the last two years, but IMO it was great before that. Never seen it crowded and it is big enough for several days worth of skiing. If you ski blues, you will like it. Good expert stuff too which you used to have to hike to, but I think it is served by a lift now. They were planning it when I was out there in '02.
I would stay in town just to get the feel/vibe of the funky mining community and you can walk to everything in town. The town is a mix of locals and fru fru folks. Someone said in another post "Count how many times you hear Oprah has a house here" [img]smile.gif[/img] But it ain't Aspen!!
Definitely more laid back than that. Oak Street Inn is a good inexpensive choice for accomodations. They have some dorm style rooms (I believe) with shared baths and it close to everything but about around 3 blocks from the lift. If you need a condo..the Cimmaron, Telluride Lodge and Smuggler are nice and ski in/out or block from Coonskin lift which will take you to midmountain. If you have some beginner skiers in your group, they can take the gondola up and back down to town instead of skiing all the way to town. Only blues and black runs come down in to town.
You will love it. It is one of my alltime fav places to ski and it is awesome in the summer too.