The Golden Mandalay Hotel is a nice place to stay. They have a web site so just look it up. I paid $20US for a nice big double room (for two), however, it was peak tourist season and hard to find a room so it is probably much cheaper now. The family who run it are lovely and will help you out with any information you need.
I am heading to the Visa office tomorrow and have just called them. The visa takes 4 days to process in Kunming and is 180RMB. You need to bring two passport photos, a passport copy and of course your passport. The number for the visa office is (871)8162810 (English speaking number for foriegners) and they are very helpful with any questions you have. Hope this helps.
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