For hotels - what is your budget - a specific dollar amount please. And are you looking for two separate rooms - or one room with 2 double beds?

100% definitely go to Sand Harbor (on the NE corner of the lake outside of Incline Village. Besides being unbelievably beautiful, there is a boardwalk that lets you easily walk through the dunes and over the rocks.

http://www.google.com/search?q=images+sand+harbor+lake+tahoe&hl=en&prmd=imvns&tbm=isch&tbo=u&source=univ&sa=X&ei=Z-5hUPv0J-b5igLLxYDICw&ved=0CB0QsAQ&biw=1023&bih=549

In October, hotel rates at Tahoe are among the lowest of the year (too early for skiing and the summer hordes have gone home). So you should be able to stay anywhere. What is your budget?

In SF -- if you plan on keeping the car, then you'll need a place w/ parking (Columbus Motor Inn and similar motels) but they are popular and sometimes book up months/weeks ahead. Parking at hotels will mostly run $40 - $60 a day.

You can drop the car and use public transport - then you could stay anywhere. Again -the budget?

If you have the time - drive around the Lake, and stop at Vikingsholm - just above South Shore on the West side. It's a classic and you can drive down to lake level. http://www.vikingsholm.org/

Also in SF - you might take the ferry ride from SF over to Sausalito - and enjoy a beautiful view of the Bay, Golden Gate Bridge and the SF skyline, or go on one that cruises around the bay.

http://goldengateferry.org/schedules/Sausalito.php

Also check other posts in here under California for more SF advice. I always recommend the Chelsea Motor Inn on Lombard St - in the Marina - which is near two great walking areas/streets - Chestnut and Union, as well as the beautiful Marina Green:

http://www.hotels.com/ho230700/chelsea-motor-inn-san-francisco-united-states/?gclid=CLTz_pC10bICFYaDQgod2XgA5w

As usual . . . oh never mind . . .

(Vikingsholm is not open in October, which is WHY I didn't mention it. And it is a STEEP/LONG hike to the house. No Handicap access at all when the place is closed)

I was going to say, you can't drive down to Lake level at Vikingsholm, but if it's closed in Ictober, doesn't matter.

I do, however, agree with Tom's suggestion that you drive around the lake, which is gorgeous and the vistas are different from every angle. It's only 72 miles in circumference.

If the price is right, the Hyatt at Inclune Village would be a beautiful place to stay.

The Firesign Cafe in Tahoe City is a great place for breakfast or lunch - no view, but cute and great food.

Thanks SF7. Just to the south of Vikingshom is a great viewpoint overlooking Vikingshom and the cove/guest house island, with rest rooms, etc. I seem to remember they had golf type carts/mini trolleys at Vikingshom to help those down the hill if it was needed.

And does it close Oct 1st or more toward mid-October?

Thanks all so much for the great suggestions! I'd like to keep our room budget in the $100-$150 range per night per couple, no more than $200. We'd prefer seperate rooms or wouldn't mind sharing a 2 room suite.

"And does it close Oct 1st or more toward mid-October?"

It closes at the end of September . . . .

BRRoby: Your budget is quite generous for Tahoe at that time of year . . no so generous for SF. You can certainly average out w/i your budget though.

The problem w/ the Chelsea/Columbus Motor Inns in Sf is because the parking is rare and their rates are semi-reasonable, they are often booked solid. So that is what I'd try first - ASAP. If you can't get in either one of them, then consider dropping the car when you get to SF so you'll have more options w/o paying lots in parking costs.

Here is a place I'd try at Tahoe-mostly for the views:

http://www.mlrtahoe.com/default.aspx They usually have rooms from around $100 and up. several lake view rooms will be under $150

Try for the Hyatt at Incline Village. Mid week rates will be particularly great in October.

We drove by Mourelatos many times this summer and it looks really nice, and has the added advantage of being near Tahoe City and its many restaurants. (Hyatt Incline, though, is a much more upscale resort)

Rooms in Reno can be inexpensive. A visit to the National Auotmobile Museum in Reno is just wonderful. Benches are provided for rest stops.

is Mourelatos new? had never heard of it and now all of a sudden i see it all over! anyone stayed there?

"is Mourelatos new?"

No - it has been around for decades - at least since the 50's. It used to have another name. I can't remember exactly but something like the Lakeside or Lakeshore resort. Back in the late 70's or maybe early 80's it became 'Mourelatos'.

I was out of the country for a few years and when I visited northshore in '81 for the first time in probably 6 or 7 years, I noticed it was refurbished and had the new name.

For things to do, I definitely recommend a drive around San Francisco. I recently had some out of town guests come and they borrowed my car. Drove around SF from end to end, then crossed the GG bridge into Marin, had lunch, drove around the hills and back into the city. Many things to do, but this is something that doesn't get quite as much mention as it should.

If there would be a drop off fee for your Reno rental car, return it to Reno and take the Amtrak California Zephyr to Emeryville and an Amtrak bus over into SF. The fare is $49/pp.
The train is scheduled to leave Reno at 8:36AM (often late).
You can arrive in SF as early as 5PM if the train is on time and there is not a big traffic jam delaying the bus.
There is also an Amtrak bus option from Reno to Sacramento with a train to Emeryville and the Amtrak bus into SF ($60).
If you wanted to see things outside SF, it is easy to rent a car for a day trip without paying parking fees at a SF hotel.

The California Zephyr is notoriously behind schedule almost always. Can't figure out why anyone would rather sit on a train for NINE hours (IF it's not late) as opposed to driving in half the time. And it's not like the fares are all that cheap either - $196 for four people. I don't think the Reno/SF drop-off fee is anywhere near that high.

This morning's CA Zephyr left Reno 19 minutes late and arrived in Davis 11 minutes early. There is a slight bit of difference between "almost always" and 45% on time which is the record for the past 12 months. How late the train is is very much dependent on the BNSF and Union Pacific dispatchers.
I just love riding this train through Blue Canyon high above the Donner Pass and I-80.