Where would I find the most interesting Basque area, a smaller town close to a larger city?

You might wish to look up "Basque Country" under "Destinations".

You might also wish to look up "Basque Country" under "Search the Forums".

Everything in the Basque country is interesting. What are you looking for?

I stayed in the beatiful village of Ainhoa
the hotel and food and wine were excelent
This was French Basque.

Maybe you should narrow your question a bit...

Thank you everyone. I'll consider it all!

I'm in Vitoria, and would like to experience a very small town where I could stay in a very inexpensive hotel. Any ideas?

How small and what are your interests? You're surrounded by small villages. If you are interested in wine, you can head south to the Rioja Alavesa and stay in Laguardia, in the middle of the Rioja wine region.

For someplace slightly smaller, and quieter, you can head up to the village of Zeanuri. There is a beautiful retreat there called Etxegana (www.etxegana.com). We spent 4 nights there a couple of years ago. It's a beautiful place to get away to for the peace and quite of the Basque countryside.

As far as inexpensive hotels go, they are everywhere in the rural countryside. Check some of the rural hotels at www.nekatur.net.

San Sebastián is the jewel in the crown in the area, and there are several nice, small villages close by.

Close by along the coast at either side of San Sebastián you find tiny Getaria and small Hondarribia. Fantastic food in both, and I've never had a fish and seafood meal as the one I had some years ago in one of the restaurants down in the small Getaria harbour.
Getaria: http://www.getaria.net/
Hondarribia: http://travel.nytimes.com/2010/08/01...anted=all&_r=0

Just inland from San Sebastián you'll find Tolosa, known for the best steaks in the world (could of course be argued, but there are some restaurants here that are as serious about their stakes as possible), Tolosa beans and beautiful landscapes close to the Aralar mountain region.
Casa Julián de Tolosa: http://www.casajuliandetolosa.com/PAGINAS/eentrada.html

Chef Matías Gorrotxategi from Casa Julián de Tolosa: http://www.youtube.com/watch?v=czpgu...eature=related

Thank you all! Your ideas are great!