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Itinerary input: London to Prague

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Hello fellow travelers! We finally have enough miles to afford a family trip to Europe again. We need to book air in July for June of 2014. Unfortunately, now that the kids are older, they cannot miss school, so summer it is! My plan is to leave as early as we can in June to try to beat the heat and some of the crowds. We have 3 weeks. My kids will be 16, 13 and 11.

With AmericanAirlines, I know I have to book 330 days in advance to get the tickets and avoid British Airways and their fuel surcharges. We only have enough for 2 round trip free tickets so we will be purchasing the other two. No rush on those. We can split the family 3/2 so we don't have to have the same flights. Any tips on the best time to purchase? Any tips on AA award travel?

Thanks to Dr. Who, the kids ranked London #1 which will be great since my husband has never been and my last visit was 25 years ago. I have a strong desire to see Prague. So, our very rough itinerary looks like this, at least in terms of beginning and end - I am very fuzzy on the middle!:

London - 5-6 nights (rent a flat)(I am sure I can find a thread with recommendations)

Easy Jet? RyanAir? to Munich to get to Fussen
(Travel through Bruges on the way?)

2-3 nights Fussen to go on fairytale castle tours (we prefer trains and tours to driving on our own)

Salzburg (because its on the way)

Prague (5 nights)(we can stay at the Sheraton for free) - fly home to SFO from Prague

Looking for any and all input on itinerary, accommodations, tours, stupid mistakes! Thank you all in advance - I always get invaluable input. We are very much driven by cost. I am weak on geography in this area so I don't have a good feel for distances and train schedules/costs.

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