While in Prague we used the services of a very resourceful guide named Karel who has a small travel company called Rainbow Travel. You will find him at www.rainbowtravel.cz He can arrange airport/train pickup and local siteseeing. He is a really nice, hardworking guy. We even had him drive us from Prague to Vienna so we could stop in Cresky Kumlov on the way. I would recommend spending at least a 1/2 day with him when you first arrive to get an overview of the City. This is much better than a large tour group and he will take you (in a comfortable car) to see the things you want to see. He also recommended a guide (not gay, but very good) for us when we went to Budapest.

In Prague we stayed at the Hotel U Pava and would highly recommend it. In Budapest we stayed at the Intercontinental and it was great, but the Four Seasons has now opened across the street and it looks nice.