You could also go to the Zugspitze from Munich on an easy day trip.

This is why I Love Fodors!!! Sometimes I have had terrible experience on here with rude people...but you all have been so, so helpful...

I have taken everything in! I am not worried about planning the "daily" itineraries yet and what we are going to do and see. I am mostly concerned with getting our hotels booked and figuring out which cities we are staying in and then work on the day to day stuff.

Here's SOMEWHAT what I am thinking of:

Saturday- arrive at night in Salzburg
Sunday- Halstatt
Monday- Salzburg
Tuesday- Day trip to Berchtesgarden and back (if I am researching correctly, this is where we can get some nice hiking in?)
Wednesday- Leave Early for Nuremberg and spend the day there or check in and head to Bamberg
Thursday- Day trip from Nuremberg to Bamberg or Rothenburg and back (whichever we don't do Wednesday)
Friday-Munich
Saturday- Day trip from Munich and back
Sunday- Munich
Monday-leave for home

Again, I just want to narrow down our hotels and where we are staying at night so I can book those right away!

Is there a particular "neighborhood" or area that we should stay once we get to Munich?

Thanks!!!

Simplified:

Salzburg - 4 nights
Nuremberg - 2 nights
Munich - 3 nights

Sounds very reasonable.

In October we stayed at the Eden Hotel Wolff just across the street from the main train station in Munich. I was a little concerned about the location but everything about the hotel was perfect. I would stay there again in a heartbeat. Both the bedroom and the bath were large and comfortable.

There is no breakfast (but free wifi) so we just went across the street to the train station for breakfast and even dinner a couple of nights. There are also other restaurants within easy walking distance of the hotel.

Your newest plan will "work" but it's very snug here:

"Wednesday- Leave Early for Nuremberg and spend the day there or check in and head to Bamberg
Thursday- Day trip from Nuremberg to Bamberg or Rothenburg and back (whichever we don't do Wednesday)"

You won't likely have time to adequately see all three places. If you're planning to spend as much of Friday in Munich as possible, you'll have only about 1.5 days once you reach Nuremberg - not much time for Nuremberg, Bamberg and Rothenburg. So...

I would try to avoid separate day trips. Do Nuremberg (to the extent that is possible) on Wednesday, then do both Bamberg and Rothenburg on Thursday. Leave Nuremberg Thur. at 9:08 for Bamberg, arr. 9:53, spend 4.5 hours there, train at 14:26 to Rothenburg (arr. 16:23) for 3-4 hours there, train back to Nuremberg. There's a 20:06 train from Rothenburg and a 22:06 train - that's the last chance to return to Nuremberg.

Tickets for this day trip: A Bayern Ticket day pass for two on the regional trains can be bought at Nuremberg station from a ticket machine; it costs €28 and covers all your travel after 9 am on any weekday.

For more time in these towns you could leave Nuremberg earlier than 9:00 - like at 8:40 - but you'd need an additional ticket for the 8:40 am train as far as Erlangen (€4.60 each, available also from ticket machines in Nuremberg.) That 8:40 train stops in Erlangen then leaves Erlangen at 9:00... you just stay on the train in Erlangen and travel on your valid Bayern ticket after that.

With more time in the area you could maybe do separate day trips to Rothenburg (say on Tuesday) and Bamberg (say on Wednesday. Spend some or most of Friday in Nuremberg, then travel Friday afternoon or evening to Munich for your night there. But it seems from your recent outline that Munich and the daytrip (presumably N'stein) are more important.

Yes you can hike in B'gaden.

Because you're daytripping from Nuremberg you'll probably want a room near the main station just to keep the outings as simple as possible.

What do you like to do? Salzburg is great for a couple of days. Add to that if you plan to expand to Hallstatt or Bertesgaden. For those who find Munich dull, you must be looking for something like a stroll on the beach. A limited list for Munich would include palaces, museums (art and science), beer halls, shopping, opera, Olympic site, BMW museum and factory tour, Dachau, WWII history, etc. etc. depending on the time of year you have the Englisher Garten or the Oktoberfest or the Christmas Markets. I haven't even started on the day trips to the Alps, the Ludwig Castles or Rothenburg.. I am a big fan and I never get tired of going back to Munich.

I stayed at http://www.motel-one.com/en/hotels/munich/
there are 4 in Munich and quite modern.

For an overview tour, try the free (tip 5E at end)
use http://www.neweuropetours.eu/ in Munich.

It's only 1.0 km (0.6 miles) from the Main square in Nurnberg (Hauptmarkt) and 1.4 km (0.9 miles) to Nurnberg castle so if you are willing to walk up to a mile to get to the train station you can stay anywhere in the altstadt of Nurnberg.

And a very very pleasant walk it is.