Krakow is a cute little city; we had a great time there a couple years back. And, especially back then, the exchange rate was great, so it was very cheap. We were driving around the region; Poland's road system leaves a lot to be desired.
Language shouldn't be a problem; we only spoke English (or, at least, the other languages we speak wouldn't have been much help) and did fine.
We stayed at a very inexpensive place called the Hotel Polska which was clean and comfortable, and right across the street from the main square. Very convenient.