Any suggestions for hotels and resturants.

Would be be worth it to stay at South Padre island and make the drive over?

If you scroll down in this link, they have an "Edinburg Forum" where I just bet you'll get the "inside scoop!"
It's not far from McAllen, where there's all kinds of "haciendas" & some great B & B's, as well as all the major hotel chains.

http://www.city-data.com/city/Edinburg-Texas.html