We are embarking on 7 week trip, arriving in Munich, then onto Italy by car. For our first night, we would like to stay in a small town on the east side of Munich. Any suggestions?

Do you mean close enough to Munich, so that you can visit the city easily, or do you mean somewhere a bit further away?

http://www.hotel-gasthof-huber.de/default.aspx?lang=en

We aren't sure about our plans. We probably will not go to Munich.

Aaaaaaaaaaahhhhhhhh I want the WEST side of Munich!! Please forgive my direction mix-up!!

I'm not a great fan of Munich but if you are interested in art, particularly old Flemish and Dutch, passing up the Alte Pinakotek Museum is a crime.
However, I have an oddball hotel recommendation if you are just looking for a place to land and catch your breath before driving on to Italy the next day - stay in the town of Freising, right next to the Munich airport. There's a Marriott within walking distance of the cute center of town (one of the oldest in Bavaria), and most particularly the Cathedral, which was a major Catholic academic institution in the middle ages, I believe, and where Pope Benedict XVI was ordained. A lot of business travelers end up in the town because of the proximity to the airport, which may explain why we found a couple of terrific restaurants (one Japanese!). We were so surprised that our stay of convenience one trip turned out to be a destination in and of itself. And you are right by the highway to go south into Munich if you want, or on towards Italy...