Would you stay at the first town (Guanajuato) and visit the second (San Miguel) or do the opposite? According to AAA book, Guanajuato has more to see but it sounds hillier and harder to get around.

Also, Guanajuato's tunnels concern me, especially in an earthquake area.
Our main interests are photography, sightseeing, shopping. What would you suggest? Ixtapa is our next choice but then, that isn't colonial Mexico. Need some advice. Oh, any favorite hotels in these places?

It sounds like you have not previously traveled a lot in Mexico, in which case I would suggest staying in San Miguel and visiting Guanajuato.

San Miguel is VERY picturesque, the sort of town you can just walk around all day photographing, and it has great shops. There are also lots of ex-pat Americans there so if you get desperate for an American meal you can find one pretty easily.

But don't miss Guanajuanto -- it's fascinating and has a lot to see.

Ixtapa? A whole nother kettle of fish. Resort development on the Pacific with lots of hotels. You could be anywhere in the tropics. I don't think of it as the "real" Mexico, personally. Good place for the beach, nightlife, catching up on your reading. Not a good place for photography, sightseeing, and shopping. Hope this helps!

In March, we went to Guanajuato and stayed 3 nights. Took an all day private guided trip to Dolores Hidalgo and San Miguel. San Miguel reminds me of Taos or Santa Fe. Many, many Americans there and upscale shopping. Personally I prefer Guanajuato because it is more picturesque and a photographers dream. We stayed on top of one of the hills and walked into the center every day. There is plenty to see and do around the town. But, it all becomes a question of what you really want. Obviously there are plenty of Americans that prefer San Miguel because so many live there. But, I don't go to Mexico to be around a lot of other Americans, I go to experience more of the real Mexico. But everyone has different views of what they want out of a vacation. We stayed at the Parador San Javier hotel and fell in love with the place.
I think the two towns are totally different but that is part of the beauty of Mexico, there is something for everyone.

I can only weigh in on Ixtapa -- don't stay there, but DO stay in Zihuatanejo (4 miles away). It's a small fishing village, just lovely, wonderful people. More of the "real" Mexico, not commercialized like Ixtapa.

Tansy, I'm a fan of Z also, although I haven't been for quite a few years. But even so, I think a beach resort area like that is quite different from San Miguel and Guanajuato.

I had been to the beach in Mexico many times, but I fell in love with the country only when I visited the interior.

Agreed, Marilyn, but Dolores did ask about Ixtapa in her original post -- that's the only reason I mentioned Ixtapa/Zihua.

I look forward to visiting San Miguel de Allende in the next year or two!