That's a tough decision and you are right - the line up is awesome this year. I believe a lot of the musicians are coming to show their support for New Orleans.
If this is your first time you may want to consider going both weekends. Make your plans now. Hotel rooms will sell out quickly and there are fewer available rooms this year. The jazz fest crowds tend to congrgate at places such as the Maple Leaf bar, Howling Wolf, and Tipitina's after the festival closes each day. There are great evening concerts not mentioned in the Jazz Fest line up. I recommend that you check out NOLA.com for info on night clubs and performances from the start until the last day of the fest. I think you can find hotel listings there also.
Now a few words of caution. If you don't like being in huge crowds or walking through the mud if it rains, the Jazz Fest is not the place for you. It is held outdoors in the middle of the Fairgrounds racing track. This is the hot, humid south so be prepared to sweat; the temperatures are usually in the high 80s to 90s. If you don't mind these things, you'll have a great time. Bring a spray bottle to cool yourself off and look into getting a cooldana.
Cooldana site
An alternative is to get a regular bandana and some of those small freezer packs that you can refreeze each night. Be sure to bring sunscreen & a hat.
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