Mae Hong Song is located in the Northwest "corner" of Thailand, near the border with Myanmar. Geographically, it is not far from Chiang Mai, but due to the terrain, it takes about 8 hours to drive between the two cities. Fortunately, you can choose to fly instead - this takes about half an hour in a small plane.
The airport in Mae Hong Son is located right in the city, so you can pretty much walk there from your hotel.
This was my hotel - the Baiyoke Chalet Hotel. It doesn't look like much from the outside, but the rooms were nice and the restaurant/bar/nightclub was very busy at night. It certainly doesn't resemble a chalet.
The hotel had an old fashioned telephone exchange in the lobby. This actually worked. I suspect that people don't receive many phone calls in hotels here, since everyone has a mobile phone. God Bless Nokia.
The view from the top of the hill is spectacular. Unfortunately, it was quite hazy on the day I was there, due to nearby fires. Overall I was impressed by Mae Hong Son, since it wasn't very expensive, and it was quiet and relaxing.