If you search for Cesky Krumlov you'll find several hotel recommendations. I stayed at Hotel Konvice (the room was large and very nice) and enjoyed it. The staff was great, the desk clerk kindly phoned my car rental agency for me since there was a light on the dashboard that keep coming on and although it appeared to be insignificant according to what I could determine from the car manual (written in Czech only but with photos) I wanted to be sure it was nothing important.

I stayed 2 nights but had a car and went outside of town to visit the Zlata Koruna Monastery which I enjoyed. If you arrive in CK late in the day then 2 nights would be good. It's a small town so 1 day of sightseeing is quite enough.

Here's a link to my photos. Scroll down for CK pix.
http://modigliani.shutterfly.com/czechrepublickrakowfrankfurtpa

Krumlov castle is really interesting; you can do several walking tours including the Baroque theatre, which unfortunately I missed (it was inexplicably closed for tours the day I showed up for it). Many people rave about the town. It's kind of feels like a fairy tale, with the castle and the curved streets. I found it a bit overrated but still very worth visiting.

If you're driving and Cesky Krumlov is just one stop, one night might be sufficient. If you're taking a bus from Prague, one night would probably be too rushed.

I stayed at the Pension Amadeus which was convenient with a car (as it had parking), but without a car I would have stayed somewhere closer to the center of town.

If you are driving, I highly recommend a stop in the town of Jindřichův Hradec, a beautiful town that isn't quite as touristy as Cesky Krumlov. The town/castle of Rožmberk nad Vltavou south of Cesky Krumlov is also a nice little town.

We also stayed at Hotel Konvice and liked it very much. We only stayed one night, but as someone else said, if you get there later on day one and/or have a car to visit the countryside it would definitely be worth staying two nights. We did an evening tour of the city which we loved, and also had one of our favorite meals at U Dobraka. Also, if it is warm enough, it looked absolutely delightful to spend an afternoon floating down the river.
Here is a link to more details of our time there as well as pictures.
http://www.fromhometoroam.com/2012/06/cesky-krumlov/

You don't need 2 days to see CK itself, so have a reason for staying there that long. Aside from the castle, which is the main point of interest, there is a small museum there, as I recall, and an old church well worth seeing.

Thank you all so much for your suggestions and recommendations.

Happy travels!

Keith

I only stayed one night after arriving at 3pm. Really wished I had an additional night!

Highly recommend the Baroque theater tour! Limited tours in English so reserve in advance.

We took an early morning bus to CK from Prague, arriving in late morning. We checked into our pension and had lunch and then had time to tour the castle and walk around the town. The next morning we were taking a shuttle to Linz but had time to go for another walk and see a bit more of the town. If you are interested in doing any biking or renting a canoe and going out on the river you might want to spend 2 nights.

I can also recommend the hotel Konvice. We spent two nights there and I am so glad we did. We did one of the castle tours - the one that focuses on the Renaissance and Baroque periods. It is one of the best guided tours I've ever done. Very interesting and an excellent guide. It was so much fun to just wander around the town, especially at night.