Personally, staying in Taipa Island is a good idea. Hotel Taipa is well spoken of. The hotel is close to the airport and HK-Macau ferry terminal.
In addition to explore the food streets around the hotel, you can also get to Avenida de Almeida Ribeiro to see Senado Square,St. Dominic Church, Ruins of St. Paul's, Fortaleza do Monte, Magret's Caf & Nata-Lisboa-Macau Wine Museum-shopping and so on. As to the transportation, of course, the city bus. In some place you can have pedicab.