I just recently opted for a day trip to Segovia, rather than Toledo, and certainly don't regret it. Segovia is an amazing city and my only wish is that I had spent more time there!
I found a great hostel to stay at that I would suggest. The Don Jaime which is located just 3 blocks from the aqueduct and Plaza del Azoguejo. It was reasonable, conveniently located, and very pleasant. It is located at Ochoa Ondategui, 8. Their telephone number is 921 44 47 87. I paid about 5500 pesetas for a modest, but nice room.
Have a great trip!