I was in Oktoberfest in 2005. I was lucky enough than one of the training courses I had to attend was held during that time; it's very hard to find accomodation, and if you do, price is double than normal.
Any hotel in Munich will do; Munich is very safe and public transportations works well. Oktoberfest is held in a big area -Train stop "Theresienwiese" if memory serves me- What will you find in there? Fairground attractions, street kiosks, and huge tents sponsored by the main beer manufacturers, that work as restaurants. I entered in a few of them to feel the ambiance, but I was alone, I didn't stay. I don't drink much alcohol so I didn't find appalling to sip 1/4 gallon beer either. On the street kiosks you could eat roasted chicken or pork sandwichs, the ubiquitous sausages etc.
Oktoberfest is a curious thing to witness, but in my opinion it is not worth a trip just to see it -but I'm not a big beer drinker anyway-. Nevertheless, Munich is worth a visit. I've been there six or seven times and know it pretty well. It's small enough to see it in two or three days. Don't miss the BMW museum, and of course, the city key monuments. There is a curious museum devoted to Karl Valentin, a german comedian from the thirties or so. He was very ironic, and the museum has inherited his personal traits. It opens (i.e) at 09:43 and closes at lunchtime at (i.e) 12:38, admission costs 1.23 etc.
What I liked more of the Oktoberfest fairground was the Wall of Death that I posted here....
http://www.sohc4.us/forums/index.php?topic=4224.0Raul