Coachella is well known for rumours galore regarding the lineup before it comes out. I think lineup is out on the 19th January.
If 808 State really is asked to play you definitely have to take the opportunity!
All I can say is that Coachella is EXCELLENT! Nice weather and more great bands than you can shake your glowsticks at. Ive been there 3 or 4 times. Also minimal advertising and corporate sponsorship...although that makes the whole event quite expensive ticket-wise.
Only downsides are the fenced beergardens (to keep out the youngsters) and the traffic... I would probably recommend the campground.
I you fly take Palm Springs PSP or fly to LAX and drive ca 2,5 hours...not too difficult.
There is a Motel 6 in Indio which is pretty close but sold out by now i would guess.