Wouldn't really advise staying in Nicosia, aside from a few old churches and the boarder posts there's not alot else to see. As it's the capital and situated inland all that's there are business' and designer shops.
My advice would be to stay in or around Larnaca. It's about 30 mins. drive from the stadium, on the coast, 20 mins. drive from traditional villages and about 45 mins. drive from the Troodos mountain range. Not to mention that this is where the main airport is.
The town itself doesn't offer too much but has a very large salt lake and nice seafront promenade.
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