Please advise re. job and accomodation; HSMP approval

Hi friends,

I am a 27 yrs old, from Delhi, India. Following is my timeline..
Applied -- 31 May 2004
Request extra docs-- 17 Dec 2004
Send docs -- 8 Jan 2005
received approval -- 14 Feb 2005

Now I need to apply for entry clearance. From what I understand
the entry clearance officer needs to be convinced that I have my accomodation arranged.

I have seen on the forum that people are giving letters from relatives/friends in this regard.
I don't have any friends/relatives who can ensure accmodation
for me on arrival. Does hotel/lodge booking satisfy the ECO ?
If so than please tell me how much does it cost for an intial decent/modest
accomodation ? and How should I get bookings done ?

Also friends, please advise which place in UK is suitable for me to
go to initially ?
I am an embedded software programmer with 4+ yrs experience.

Thanks a lot for your suggestions.

regards
AC77