How to get Yangshuo from Shanghai and where to stay?

You can go to Guilin from Shanghai first and then take coach from Guilin to Yangshuo. There are coaches from Guilin to Yangshuo at the Guilin Railway Station.
I advise to live in Yangshuo to appreciate the beauty of Yangshuo. I advise not to live in the hotel near the West Street, because it will be a little bit noisy at night and more expensive.