Spec me some Amsterdam!

With the tram service over there mate, I wouldn't worry too much about staying in the red light area itself. Save yourself a few quid and stay somewhere like Leidseplein , which is a great area of the city for nightlife and has trams running every five minutes into the centre/red light area (trams 1,2,5,7 and i think 10) . Smoker friendly hotel with a lot of character - http://www.rookies.nl/uptown/ ..sure you'll have a great time wherever you choose.
 
With the tram service over there mate, I wouldn't worry too much about staying in the red light area itself.

TBH, Amsterdam is small enough to walk - I stayed in a hostel in Zeeburg and walked over to the red lights for 4 days (epic long weekend). Took about 45 minutes, but there's all sorts of interesting stuff in 'Dam to see. Don't get ripped off by cabbies either, ask a local how much fares should be or you'll get charged tourist rates.
 
When your sharing a room with people other than your friends what do you do with your bags? Big lockers? Bit worried, have major trust issues lol

Some hostels have lockers for your bag, often at the end of the bed. Otherwise you can chain it to your bed. It's worth taking a padlock with you when travelling. The hostel website should tell you more.

However, I've never had anything go missing from my bags. If I did, it wouldn't be a big problem anyway - I wouldn't travel with anything expensive. All cards/passport/money stay on my person at all time.

Just remember, everyone is there for a good time so it's very unlikely anyone will be on the rob. Travellers/backpackers often look after their own.
 
this is where i stayed

http://www.nh-hotels.com/nh/en/hotels/the-netherlands/amsterdam/nh-grand-hotel-krasnapolsky.html

its 5 star hotel, literally 1 minute walk from some red lights and 1 minute walk from some coffee shops, the hotel is on DAM square, so its bang in the middle of the city centre.

its expensive, but if your going for 2 nights and sharing a room with a mate, it brings costs down. just dont use room service or the mini bar/fridge.

Stayed at the Kras several times, location is perfect you do have to be careful re rooms though as they are very variable in terms of size/quality
 
You won't have to worry much about walking or getting taxis, trams will take you most places you need to go. Buy a travel card at the airport, it'll start from the first time you use it.
 
When your sharing a room with people other than your friends what do you do with your bags? Big lockers? Bit worried, have major trust issues lol

In the Flying Pig there are drawers under the bed you can use if you have your own padlock or there are electronic lockers which you have to pay for.
 
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