Could use your advice about towns/cities to visit within short train rides from Munich.

Oberammergau, Fuessen (for Neuschwanstein and Linderhof), Prien for the Ludwig castle on Herrenchiemsee, Augsburg; Rothenburg a bit further on by train; Salzburg 1 1/2 hours by train; Berchtesgaden.

Let me hasten to add that NONE of the above are "MUST SEES" because I do not like that terminology..with the greatest of respect for you...I think these places are all "interesting sees" depending on your own interests and needs. Only you can decide, after you've been there, if they are compelling or not.

With the understanding of the term "must sees" as defined by ira, I would add to your list the following places: Landshut, Ingolstadt, Rosenheim, and (a little farter but still easy to reach by train) Innsbruck. Good luck.

houdi,

The Town of Dachau has a _major_ site that should not be missed.

I agree with the Dachau choice if you're interested in that sort of historical and very powerful venue..easily reached by S-Bahn w/change to local bus..hard to get lost. Another possibility within Munich would be the Nymphenburg Palace which can be reached by tram from the center without changing..and if that sort of this suits you I would also consider the Residenze which is more or less In the city center.
Rosenheim is especially easy to reach by train (less than an hour)..the Herrenchiemsee Palace I mentioned above requires a ride to Prien (on the Munich-Salzburg route) and a change to one of the ferries from the nearby port of Stock (10-15 minute walk from Prien Bahnhof or you can take the narrow-ga. railway) over to the island...a definite tribute by Ludwig to Louis XIV in every way complete with its own Hall of Mirrors which is spectacular.
I think you'll enjoy your time in and around Munich because there is so much you can see and do.