I've been to both Oxford and Starkville on a few occasions and here are my observations:

Oxford: Nothing to really do in Oxford, so you might as well stay 2 hrs away in Memphis. On game-day, be prepared to drink your alcoholic beverages from a cup, especially beer. If not, you will be hassled by police and they may issue a ticket. The grove in my opinion is overrated but is a site you must see, tents on top of tents, people trying to be high class dressed in suits and dresses. However, they do not allow open flames for barbecue, generators (even inverters), etc, so what kind of tailgate is that? The stadium is kind of plain and the fans are stuck up and a pain.

Starkville: There is nothing in Starkville other than the university so staying in either West Point or Columbus is your only option. There isn't a whole lot to do in either but I did find a damn good burger joint in West Point, Twisted Burger. Game-day is rather laid back but I enjoy it. You can drink and you won't be hassled, cook food on a grill and run your generator for music. The fans are nice and great to hang out with. It reminds me more of the LSU atmosphere but watered down. There stadium in my opinion is nicer than Ole Miss and they have a huge jumbo-tron with ads that don't take up the whole screen. The only negative I have with Starkvile is the cowbell but that's expected.

If you are going going for just the game and game-day atmosphere, I say Starkville. I have had alot more fun there and enjoyed myself being able to tailgate and throw down like at home.

If you are making a trip out of it and want to site-see, then Oxford is your choice and staying in Memphis is a must. However, in my opinion, the tailgating is not worth it, as there are too many restrictions.