I'd recommend that she stays fairly central in Ao Nang for two reasons:
plenty of restaurants to choose from in the evening and it's handy for the longboats heading off to different islands. I stayed at Ao Nang Villas but this was a number of years ago though I believe it has since been renovated and I've been told it now has 2 pools. Try Sawadee.com for reasonable and reliable accommodation.

We're going to Krabi next Easter and have booked to stay at the Central Krabi Bay Resort. It only opened this year, but it looks gorgeous on the website and there have been some very good reviews of it recently on Trip Advisor

The Ao Nang area is quite a lively resort. Plenty of shops, bars and restaurants. The beach itself is not that brilliant but is used as a departure point for trips out to the islands. Many of the hotels in Ao Nang are not actually on the beach, so that is worth bearing in mind when choosing. As Chris12 says the Ao Nang Villas hotel is well positioned and has been refurbished in recent years, I walked round it this March and it seemed pleasant enough.

We usually stay outside Ao Nang, on Klong Muang beach at a small three star hotel the Krabi Sands Resort. The Andaman Resort, Nakamanda and Krabi Sheraton are beachside choices here.A much quieter area with only a handful of restaurants and bars. Get to Krabi soon though, development continues apace with a number of large hotels being built in the area which can only add to the number of people visiting the outlying islands

If anyone has stayed at the Central Krabi Bay Resort then please add your review HERE

Many Thanks.

My daughter is going to Krabi in January and was considering going to Ao Nang area however she was wondering if anyone had been there or anywhere else and had any comments / suggestions? also any hotel recommendations or those to avoid - looking at minimum three star - much appreciated

Hi, we're going to Ao Nang in January also adn have booked the Pakasai hotel. Looks good and was £48 per night with Asia Web Direct:

http://www.krabi-hotels.com/aonangpakasai/

We stayed in Ao Nang last year at the Ao Nang vill awhcih was also nice. We loved Ao Nang as it is a really good base to explore the beaches nearby. Also, the Sea of Love bar is a cool wee place your daughter might enjoy

Many thank's for your reply's have past all your info on, it is her first DIY and Krabi is the only one left to book now.