Looking for a place for 2 people, Thurs Aug 10 until Sat Aug 12th. I want to be within walking distance to the beach This is not over the Sat-Sun period so not sure if that would be an issue in trying to find a place.
I have never been so want something decent but not super expensive.

sorry to all for the multiple postings I was not seeing it show up

really miz I hope you get your miracle. You could try Prudential as they may have a last minute cancel. There is a Castle Motel but that is a nice walk 15-20 minutes from beach. Oceanus isn't far from the beach either.

Within one block try - Brighton Suites or Avenue Inn. Two blocks - the Bellmoor. A long three blocks - Sea Witch Manor B&B.

This site has a pretty expanisve list of places to stay:
http://www.rehoboth.com/stay.asp

I'm originally from that area and was just back there for a week (stayed in condo). Have also gone back for weekends and stayed in hotels. I don't know your idea of super exensive, but you may have a hard time finding something that close to the beach that isn't super expensive AND decent. At times, we've even had a hard time finding something on Route 1. As Rumrita said, I would suggest the Bellmoor. Also the Sands might be a viable option for you. Good luck.