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Drayton, ON, and then what?

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We're thinking of going to the music festival in Drayton in mid-August. I'd like to stay overnight somewhere but I'm not too familiar with that area. I'm looking for a town within about an hour's drive from Drayton but not an hour that would take me much farther from Toronto. We'd want to stay in a nice inn or B&B or even a nice motel and browse a charming town on the next day (which would be Sunday).

As far as I can see, towns which might fit the bill in terms of location are:

Fergus
Elora
Elmira
Erin
or Drayton itself.
Any others?

Ideas? Suggestions? And if you have any lodging suggestions, I'd love to hear them as well.

Thanks so much!
gtg

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