Hire a driver, Wayan Sueta or Dewa Marco, both highly recommended by FTers. There is no signage on many roads, which would make it very difficult for you to safely navigate the island.
http://www.flyertalk.com/forum/asia/...li-driver.html
As for a hotel, I prefer to stay in Ubud, the artistic center of the island, to what I feel is a more sterile tourist south. I stay at
Alam Jiwa, a very quiet, very charming, locally owned property just outside Ubud. It won't be to everyone's taste because it is so quiet, but I find it somewhere quite special.