I've been through there. I went on the Stray hop-on hop off bus and the hostel in the Lake District we were supposed to stay at was booked up (gee, good planning dicks) so I only got to see it as we drove through. It looked nice though.
I stayed in Ambleside for a night and it was a nice little town. don't know what the best town is to stay in but the whole area was very nice, lots of beautiful scenery.