Re: where to stay in Carmel
You might want to look at Asilomar Conference Center. It's not right in Carmel, but is right next to it, a very short drive. Great prices, full cooked breakfast, no 2 night minimum stays, gorgeous grounds. It was designed by Julia Morgan and is a really unique place. Rooms are simple and rustic, no TV's. Great place for kids too, with ranger-led campfires at night, a pool, an interesting nature center and tidepools right across the street. You can get more info & check availability at their website, www.visitasilomar.com. We've really enjoyed our stays there over the years.

Re: Monterey Lodging
See if you can get a room at the Asilomar conference center in Pacific Grove. They mainly book groups but will rent out individual rooms if they are available. The rates are very reasonable (and I believe include full breakfast in the cafeteria), the location is stunning and buildings lovely, and there's lot of running around space and paths to the beach. It's the region's great hidden deal! budget traveller