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We are not prudes, and will no doubt take a look at the red light district areas. However, I would prefer not to inadvertently book a hotel in the area. One of the interesting things about Prague is that its vices are not hidden away in one or two disreputable districts. You'll find poledancing clubs situated right next door to family-friendly restaurants, saunas in the shadow of great churches and adult shops overlooked by pricey hotels.
To my mind, it's what gives the city it's edge; wandering down a random road, you never know what you're going to come across. That said, there are some places that are decidedly more seedy than others, although this often owes more to atmosphere and reputation than any particularly concentration of vice.
Zizkov Prague 3 is a good example and some of the streets around the Muzeum end of Wenceslas Square and Wilsonova attract an 'interesting' selection of people. Your likely to find the crowds of screaming drunk tourists far more offensive and far more of a hassle than the odd porn shop or girly bar.
Thankfully, few of them venture south of Vrsovicka or west of the Vltava River so are easy to avoid if you're willing to stay a little out of the centre.
I'd suggest looking at Mala Strana. Danny, thank you for your very informative reply. I will look at Mala Strata not sure till I look again whether any of the list of possible we have are there, and you are so right about the offensiveness of the screaming drunken tourists.