IF Telluride overnight is a weekend, I would skip it and go to Ouray.

Telluride has festivals every weekend during the summer and most hotels have 2 night minimum.

http://www.visittelluride.com/festivals-and-events

There's only two festivals in Telluride in September, unless things have changed recently. Those two are the film festival which is always over labor day weekend and the second is Blues & Brews which is the middle of the month. If flurrygirl1218 is going with her original plan of travelling the first week in Sept., there should be no problem with crowds in Telluride even on the weekend.

Flurrygirl1218, some restaurant recommendations for Durango-Breakfast, Durango Diner; lunch or dinner casual, Steamworks microbrewery or Old Tymers; dinner Ken & Sues, Seasons, Eolus, Cyprus Café. All of these are in downtown Durango. Early Sept. will be a nice time to dine al fresco and all of these places except Durango Diner have great patios.

I missed that this was September.

We have gone to Blues and Brews many times and have had day time temps of well into 80s and then it has also snowed in the same weekend!! be prepared for all possibilities.

Kennebec Cafe is a favorite of ours, on the road between Mesa Verde NP and Durango.

Also, Guido's for Italian food.
And Gazpacho New Mexican Cooking Y Cantina

Thank you all SO MUCH! I am so excited now and feel so much better because of all your help!

Personally think Great Sand Dunes and Mesa Verde are the highlights of this loop.