Personally I would avoid Kuta and stay in Seminyak near Potato Head Beach Club for 3 nights and then stay in Ubud for 2-3 nights.

In Seminyak we stayed at the Pradha Villas which was a short walk to the street with all the restaurants, the beach, and to Potato Head Beach Club. We had a 1 room villa w/ a pool (under $200 a night after discounts) and separate building for the kitchen and guest bathroom. There was a guestroom that is kept locked unless you pay extra. They will bring you breakfast each morning or have a cook make breakfast in your kitchen for you. Great location! The beach there was very nice. I liked that once you were there you everything was within walking distance. When Travelocity had a coupon with a big discount I booked each night as a separate reservation and it really drove the price down.

In Ubud we stayed at KajaNe Mua which had an amazing location and a private van to drive you any place you'd like to go. We did a villa with a pool for under $200 a night.

In Seminyak take a day to relax and go to the beach. Book a tour (PM me if you need a suggestion) to South Kuta. I believe a private tour is typically $50-55 for 10 hours. In Ubud you won't need a tour guide for the monkey forest or anything in town. You will want to do the rice terrace, water falls, temples, etc.. with the tour guide. The tour guide can also take you to another monkey forest that isn't as busy with tourists if you want something more secluded.