We stumbled on this fantastic little place on the Travelfish site (www.travelfish.org) which is a travel site dedicated to travel in Thailand, Cambodia, Laos and Vietnam and it was a great, friendly place to stay. Located in the older part of Sukothai, it is about a 5-10 minute walk into town and nicely isolated with a variety of accommodations from simple bungalows with fans to nicer, bigger ones with air-conditioning. As you can see, some of the rooms are on stilts above a very pretty lotus pond and have nice balconies (where you can enjoy a cold Singha beer!).
The gentleman who runs it is French and a very nice guy full of information about Thailand and the sites at Sukhothai. A really good breakfast is included in the price (ranging between $20-$35). Highly recommended ��" in high season, you might want to book ahead. Nice website too!