Hey mate,
I went to Phuket last year in August. We stayed at the Millennium Hotel which now joins onto the massive shopping centre called Jungceylon. It has 4-5 levels of shopping stores so your bound to find what your looking for.
The food is great at the Millennium but it can get expensive so your better eating out. Your best bet is to walk around and find the restaurant that has the most foreigners in it. That way you can even ask them if the food is ok before you sit down and order.
We didn't do many water sports, just jet skied and did some snorkling around Pi Pi island which is a must if you go.
As sightseeing goes, Defiantly do the 4wd quad bike ride through the jungle upto the giant Monk. Awesome fun, but prepared to get wet and filthy

Elephant riding is a must too. If the rider asked you if you want a shot, make sure you say yes! Good fun
Now the nightlife...You will never experience anything like it. Bangla road is the sex industry capital of the world. Its crazy, during the day it's just like a normal street, then around 6:30pm, they block it off to the traffic and it turns into a mans most wildest dream.
Drinks are cheap as, every single bar girl is a hooker and they will "seem" to love you but you mustn't forget it's ALL about money. You dont even have to look for someone to "hang out with" As soon as you cross that Bangla road barries, your like a pile of shit and the bar girls are flies...They wont leave you alone
Just keen an eye out for the lady boys. Oh and make sure you see the ping pong show!