Oh Charlie, you're talking my favorite place "down the shore" lol. I've stayed
a couple of times at the Colton Court Motor Inn in a two room suite with kitchen on the second floor on the end facing the ocean. My last visit was in October, 2007 for a long weekend. It's right across from the beach and within walking distance of the promenade shops and restaurants. It's clean and the manager, a Hungarian woman, is very nice. There's an Acme not far if you want to go food shopping. I think it's a great bargain in that you can have your breakfast and take some sandwiches to the beach across the street, and go out to dinner with some midnight munchies left in the fridge for when you come back. There's small chairs and tables for you to sit outside on the balcony and watch the horse carriage go by.
Also on Beach Avenue, I've stayed at The Sandpiper Beach Club. See Image Link and scroll down for photos, etc.
Not to be missed is the Lobster House for lunch, dinner, or seafood shop. The Whale's Tale is my favorite gift shop filled with shells, toys, books, and some really cool things.
There's also a very informal restaurant at the southern end of Beach Avenue where you can walk to. (Can't remember the name) It's a BYOB and the food was good and inexpensive last I remember. That end of the beach is beautiful with a large jetty across the street and miles of beautiful beach to meander. It's an ideal spot for the sunset.
Charlie, if I can think of anything else, I'll add to here. Shoot me some more questions if you want.
http://www.capenet.com/capemay/colton/
http://www.discoverourtown.com/hotel/90513.html