Internet should not be a problem anywhere you travel within India. There are internet USB cards available with pretty decent speed & connectivity. Here are a few - http://www.reliancenetconnect.co.in/ http://www.tataphoton.com/

With internet connectivity, you can travel to different cities and experience life there, rather than being based in only one city... just a suggestion.

Once you have decided on the city / cities where you want to stay while in India, for the accommodation, you can even post at HN google groups in India (http://news.ycombinator.com/item?id=1885605) to see if any member can help suggest a good option for stay. And yeah, as someone suggested, check out airbnb as well.

Safe & fun travels!