Hotel Information
There are a number of hotels in both the areas of San Jose and San Francisco, so there should not be any problem to help accomodate everyone.
Deepi and I have arranged a group rate at the following hotel:
Hyatt Regency Santa Clara
5101 Great America Pkwy
Santa Clara, CA 95054
(408) 200-1234
The hotel is approximately 20-25 minutes from the Sikh Gurdwara (location of the wedding ceremony) and 45-1 hour from The Galleria in San Francisco. The group rate includes a two night stay at the hotel for those who want a central location for both events.
Many people are deciding to stay at the Hyatt - Santa Clara for Friday and Saturday night and just tough out the drive to and from the reception. This is very possible. Another option is stay in Santa Clara one night and then book another room in San Francisco for Saturday night. A lot of people are also just booking both nights in San Francisco. The option is yours, just make sure you make it! hehe. 
UPDATE (June 6, 2007)
The hotels in San Francisco were not offering any good group rates. Deepi and I focused our attention to the Union Square area because of its proximity to The Galleria. Today (June 6th) I started to book rooms at the Hilton - San Francisco on O’Farrell Street. It’s 1.5 miles away from the Galleria, so transportation will be easy to and from the reception. They are currently having an internet sale right now and the prices are about $50 cheaper than the other big hotels in the Union Square. We’re leaving it up to you, but we suggest that you book the hotel soon to take advantage of the prices, especially if you know you are coming to the Reception.
If you decide to stay somewhere else for the Reception, then you have the option of driving or taking a taxi to the Galleria. We have been told that parking is not a problem around the Galleria on a Saturday night, so there should be plenty of street parking. Taxis are always a great option too.