The area that we recomend that you stay in is west Crete close to the second largest city on Crete called Chania we recomend getting a hotel within 20 KM of Chania otherwise you will be to far out and spending to much time on travel.the following sea side towns/areas are all perfectlye situated.
AGIA APOSTOLIE
AGIA MARINA
PLATANIAS
GERANI
KALAMAKI
CHECK OUT THIS WEBSITE TO LEARN MORE ABOUT CRETE AND THE CHANIA AREA.
http://ellada.net/crete-info/index.php