As most locals will tell you this is the place to go. I personally prefer Fremont Street over the strip. Many interesting people dressed as "characters", cheap drinks, and inexpensive food will definitely help stretch your entertainment dollar. Of course going in the evening will allow you to see the numerous music performances on the giant screen covering the entire street!
During the summer you will always find live music and if it gets too hot you can duck inside for some cheap gambling!
If you're new to the area or visiting and you want your picture taken with the numerous "characters" you find downtown or on the strip be sure to give them a buck or two... That's how they're making a living.