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Car rental in Cairns & Lilybank B&B

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Hello,
We were thinking about making Cairns our base and stay in that area for about 8 days. First question - would anyone recommend renting a car and if so, what is the best place to get on and what kind of price can we expect? Second - we are seriously considering staying at Lilybank B&B...any comments? How close is it to the beach and the city?
And finally, we are considering the option of only spending maybe 5 nights in Cairns and taking a cruise for 3 days among the islands, does anyone have any suggestions or advice about this idea? We had originally planned to go to an island and that is still a possibility but we are the types who don't really want to see or do the same things every day so we liked the idea of a cruise since it would hopefully allow us to see various islands. It also seems much more economical, surprisingly, to cruise as opposed to staying in an island resort!
Thanks in advance for everyone's help.

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