Wondering which area to stay? Looks like I'm leaning towards Downtown. Also, I want to be in the mix! LOL! Somewhere where I can just walk outside and see the City. Good food, Lounges, and a safe area. Any recommendations?

You'll want to stay in Union Square, it has everthing you listed and more.  Hope you have a great trip!

If you search this board you will see the same question was asked many times. I live in SF and Union Square is the best place where you can see the city, walk to many fine areas, filled with great hotels, art galleries, theatre, shopping mall, fine dining, fine stores, etc. Let me know if you want to know more!

The other posters are right - Union Square is the best neighborhood in SF for what you have in mind.  This web portal:  http://www.unionsquareshop.com/index.html  is a convenient way to access the many hotels, restaurants, and shopping in the area.  

Good luck.

Union Square it is!