I live right down the road from Killington and I would suggest either renting a condo there or at Piko (cheaper, backside of Killington, where the locals ski). If you want to stay in the quintessential VT town, Woodstock is about 25 minutes down the road, the inn is wonderful but pricey, there is also a hotel called the shire (sounds sketch but is pretty nice!) that is more economical. Rutland is also about 20 minutes from Killington, but it is a pretty gross town, I would not suggest staying there.