Does město sound like menesto to anyone else?
It is pronounced [mňesto]. See Tips and Notes about the pronunciation of mě and mně.
to me it sounded a bit like "miesto" but i looked at the word bank and there was only "mesto"
town-city Is there any difference?
City is bigger, I think it had to have a cathedral. In Czech we have just one word for both - město.
so "nice town" is inaccurate?
nice - pěkný, hezký