Inexpensive Hotels seem to be more available in Sirmione on Lake Garda than in Como, and Sirmione with it's castle and Roman baths looks like an interesting place. Anyone been there?

Yes, & it's not nearly as interesting as it appears to be in the guidebooks. There's not much there other than looking at the rather small castle, which was closed when I was there at the end of April '98. Como is so much nicer, even the town of Como is a nice place to stay, & hotels are very reasonable. There are also plenty of hotels in Cernobbio, Menagio and Tremezzo, as well as elsewhere along the lake; it's not just Bellagio & Varenna. You may not find many listed with websites, but depending on when you're going, you may not need to book ahead. You'll definitely need a reservation for July or August, which are probably booked solid by now anyway as a lot of Italians themselves like to retreat there when it gets hot.

I would agree with Holly about Sirmione. We spent a morning there and found it incredibly crowded, very touristy and not all that special ( htis was in ealry May---July and August must be unblievable!!) I think there are probably other towns on Garda that would be better. I think Lake Como is simply spectacularly beautiful and as Holy said there are a number of towns to consider staying in. Enjoy!