Thank you everyone - have booked the Casa Munras.

This is where my DW and I stayed on our only night we spent in Monterey. http://www.montereyhostel.org/
It is within walking distance of the aquarium and Cannery Row.
Parking is free in their lot. There is limited time free on street parking.
Being able to cook in their kitchen and eat in their large dining/commons room was nice.

You will enjoy you stay in Monterey and Carmel. I wished you were here now the weather is beautiful.
Del Monte shopping center is close to Casa Munras, you mentioned shopping in one of your posts.

Have fun.

THanks Nancy - hope the weather lasts.

For Casa Munras, request a room upstairs or facing the pool/garden area rather than facing the parking. The lay-out of this hotel is like an old-style motor lodge with 2-story buildings around the central pool/garden area and parking next to the buildings. The lay-out is nice and comfortable, but the drawback is that if your room is on the ground floor facing parking, and you have late arrivals or early departures, the car noise can be bothersome. It isn't a big deal, just nicer if your room doesn't face the parking.