I am a huge, huge fan of Nara. It's very, very different from Kyoto, and in many ways the historical sites are even more awe inspiring.

Todaiji and Horyuji are MUST visits. Yakushiji, Toshodaiji, Kofukuji, Kasuga Taisha are also amazing places. I'd say even one night is insufficient - it's that incredible.

We've stayed at Hotel Setre Naramachi (modern boutique hotel with great food) and Noborioji (pricey but suites are decent, dining is very good and the location is unbeatable - close to Nara Station and Nara Park), and intend to check out Fufu Nara sometime in the future.