Hat Yai is always worth a stop, especially if you have to aquire a stamp into your passport at the Malaysian border. Pedang Besar is just 55 Km away and it takes 1,5h with the red bus, leaving from "Hor Nalikah" or clocktower.
There are some decent places for "farangs" or travellers, especially for those who want to eat some European food from time to time. Just to name one, there is the "SWAN" downtown on Thamanun Withy. Opposite of the "New Season Hotel" there is a vegetarian restaurant runned by Chinese people, dead cheap and delicious. On Suppasanrangsan (next to the J.B Hotel, known to everybody in Hat Yai), there is the "Great Hotel", brand new, clean like a clinic, reasonably priced (650THB per Sept. 08) with wireless Internet in all rooms. Cheaper but also recommendable is the "Hok Chin Hin Hotel" on Nipa Uthit One road. Ask for room 205, 305 or 405 if available.
Great markets are downtown, the fresh market "Sansisuk" (don't wory about the flies on the fish), and the famous "Kim Jung market", which you can find opposite of the "Hor Nalikah".
Sightseeing: The Temple of Wisdom, The Brahma Statue, the Guanyin temple underneath, a Chinese goddess, Ton Nga Chang Waterfall about 30km from Hat Yai.
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(still being extended)
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