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Vacation in Europe

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Hi
We are family of four(my parents, my brother and me) from India.

We are planning a vacation in Europe in mid or late september 2012 for 15 days and need some help in planning this vacation. Our budget is economy.
We are interested in natural beauty.

Following are the countries that we want to visit (Tentative)

Germany - Munich, Heidelberg, Baden-Baden, Rothenburg
Switzerland - Bern, Zermatt, Interlaken or Luzerne
Austria - Vienna and Salzburg
and may be Paris?

We heard that Switzerland and Austria are same in terms of scenic beauty and visiting one of the two countries is enough. Please advise on that.

We would be fine to stay in Bed and Breakfast Inns as I heard these are little cheaper.
We would like to travel by train and would like to know about rail passes.
One of my cousin was in Frankfurt and he used to travel in weekends by taking daily pass for 5 euro.

Also, we are vegetarians and are little concerned whether we can find veg food.

Please advise on places to visit, accomodation, transportation and food.

Any other tips and advise is welcome.
Thanks

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