This has come up often in several threads, so I'm making a sticky thread for it. Feel free to post your recommendations, experiences, finds, etc. on lodging near the fairegrounds. Here are some links from MapQuest with addresses to start with:
Hotels by distance: http://tinyurl.com/286js2t
Campgrounds by distance: http://tinyurl.com/2fy9j4c
The Hampton Inn across the street is the most convenient place but fills very quickly as alot of vendors stay there. There is a Country Inn and Suites and also a Hilton Garden Inn west on 72 which are both good. The Farmer's Hope Inn is a nice spot but small but serves good food. Other good food spots are the Quentin Haus and Quentin tavern