As indicated by some of the posts here, and most travel books, Bali has a really wide range of accommodations and activities. I only had a chance to see Denpasar, but by all accounts try to include Ubud.

I went in 2002 and stayed at a small, mid-priced hotel in Tanjung Benoa, called Suites Hotel Bali Royal. It was lovely and highly recommended. Food at the hotel was modest but the atmosphere and neighbourhood were great, with a nice restaurant next door.

Enjoyed Bali thoroughly and I don’t think you’ll be disappointed in things to do or see. Go with an open mind and try to appreciate the history and culture.

My personal recommendations – dine at Jimbaran Bay, temple at Uluwatu, Walk Tanjung Benoa (not the shopping area, the neighbourhood), white water rafting (number of places around Denpasar).

Enjoy your trip.