Thanks to everyone for your help. It has been quite valuable. One more question, should our trip be all planned with hotels and all or is it possible to just travel day by day?

While it might be possible to find places as you go, it can take time to hunt down a place, and you're getting "leftovers" that may not meet your budget or other requirements. Early September, right? Still a fairly popular time to travel, still some competition for rooms. I'd book now.

Anywhere near Munich in September/October for the fest needs booking now. "Near" means within 50 to 75 miles.

Elsewhere you should be able to pick up stuff via booking.com the morning before or on B&B websites, but it will mean less choice. I'd start by booking 1st and last night so at least those are solved and have a more seriouse focus on weekends as well. Sept is a good time to book for adult away weekends.

If you want specifics then book now

Plan and book now.

I would definitely plan and book now.

If you want to see what will be left when you get there have a look at one of the towns you are targeting now. If they are already mostly full then you will find only left overs if you look when you are actually there.

And agree it is VERY late for anything for Munich.

You know the answer.
You are already late.

Did you book a hotel in Nuremberg?

not yet, flpab. Any suggestions?

http://www.hotelvictoria.de/en/contact/contact.html

You take the tunnel from the train station and you pop out inside the city walls. You will see this hotel right away. We loved it and stayed on recommendation of another Fodorite.