Named after the farmer (Joshua Kip) who used to own the bay that used to be here, Kips Bay is a small and cozy New York City neighborhood bordered by 34th street to the north, 27th street to the south, 3rd avenue to the west and the East River to the east.
It's a nice area, just north of Gramercy Park (though not officially bordering it - there's a dead zone between 23rd and 26th streets that doesn't technically belong to any neighborhood but that is generally considered to be part of Gramercy) and incorperating many of its virtues - young people, good neighborhood bars, safe streets and varied architecture. Kips bay is also lucky enough to be home to the Loews Cineplex Kips Bay Theatre, largely regarded as the best multiplex on the island. Other points of interest include the east river, the NYU Medical Center, lots of good, cheap food (and good, not-so-cheap beer) and Saint Illuminator's Cathedral.
Transportation isn't too hard to deal with: 34th street is a major crosstown street and the 6 train stops at the corner of 33rd street and Park Avenue South. The closest major subway station is at Herald Square (34th and 6th avenue).