Here is the NJ Transit map. Give you a better idea of where the train runs:
http://www.njtransit.com/sf_tr_schedules.shtml#
Both Newark and Elizabeth have plenty of hotels in that price range, some even cheaper. And it's about 35 minutes into Penn Station from either.
Look at Morristown,Madison, Summit NJ area. Morristown is about an hour train ride into Penn Station and it's a really nice area. There is a Best Western there and you could possibly walk to the train station. There is also a Westin and Hyatt but they will be more expensive. Summit would make it a shorter ride, not sure of any hotels in the area though, but you could search online.
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