Glad to see Chunder is as constructive with his posts in this forum as he is over in the rallycross forum.
I did my first trip to Le Mans on a coach with Select Motor Racing, as I didn't want to have the hassle of planning on my first outing to Le Mans (plus I was travelling in a small group, so the coach was a good way of keeping costs controlled). They have a load of options for either camping or hotels, so I'd say they are worth a look for your first excursion.
I have driven down and camped with a larger group at the circuit on subsequent trips. I personally hate camping, but Le Mans is the exception as the atmosphere around the circuit is superb! Being on site gives you a lot more time to nose around as well, so being at the circuit is definately the preferable option if you can do it. As has been mentioned, some of the local area can get congested at times, so you can avoid that if you are onsite.
Oh, and if you decide to sleep during the race, dozing off in your tent to the sound of racing is the nuts.
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