Can anyone advise if it's better to stay in the lijiang old town or the Shuhe or Baishu village

I think Lijiang old town is much better, since it has more restaurants and more transportation options to other places than the other two. The maintenance fee may be charges by the hotel inside. As for hotels, you can choose 7 Days Inn or Jinjiang Hotel.

Lijiang offers a greater transportation network and has a lot more to see and do, but if you’re looking for some quiet and a lovely countryside stay, sleep in Baishu for a couple nights. The two towns are incredibly close to each other, about 5km apart, so you can easily get between the two on the Number 6 bus, by bicycle rental, or by cab. When you go to Baishu, be sure to find Sebastian and Eva and ask them about the hiking trail to the temple on the hill. He’s from Canada and she’s from China, and they have a lovely litttle place in the village.