I love Greece too. It will be hot and crowded in August and you'll also have the meltemi, a strong hot wind that doesn't exactly cool things down.
That said ... Santorini is gorgeous. It's about a 12-hour ferry ride from Athens, so for only four days you'd probably want to save time by flying. Santorini has beaches, great cliff-side hotels with infinity pools and the archaeological site at Acrotiri, which we found really fascinating. If you get bored there, you can also take the ferry over to Ios, the party island, for the day. Lots of beaches, lots of nightclubs, lots of backpackers.
Some of my favorites that don't get nearly as many tourists as the ferry doesn't go as often and the large cruise ships don't put in, are Folegandros and Serifos. Serifos is about 6 hours by ferry; Folegandros 11. Both islands are relatively quiet with beaches, comfortable cafes and drinking spots and picturesque views. Both these have small towns and no fancy hotels, but they are wonderful places to just relax as there really isn't much else to do there.
Sorry, I've only chartered sailboats there so I don't have hotel recommendations.
Have fun.
[This message has been edited by letiole (edited 07-03-2000).]