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Planning my 1st Europe trip

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Hey! I am starting to plan my first trip to Europe for summer '08 (late May). My husband and I both have never been and I am trying to figure out what will work best for us. I would like some advise on travel and hotels. Our plan includes:

-2 weeks in Europe (my husband only gets 2 weeks vacation)
-Will visit London, Paris, Rome, Venice
-Want to spend about $250 per night for a hotel in London and $150 for other cities
- Is it worth our time (and do we have enough time) to visit Bath, Edinburgh and Amsterdam?
- Since we are trying to see so much in such a little time should we train from city to city or fly (and what is the least hectic?)
- Any hotel recommendations for the major cities?
- We are thinking of flying in and out of London but may fly out of somewhere else (if it saves us good time and is not too much more expensive)

Anyway... I really appreciate any info you can share. I do not have any family that has gone to Europe and I firmly believe in personal recommendations! Thanks! :)

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