Well, I live in Carmel and was going to give suggestions on hotels but after reading your comment about telling someone to get a life because he helped you by correctly spelling Monterey for you...good luck on finding a place. I think you'll fit in with one of Kimamom's suggestions quite well.

Hands down Carmel. Make sure you go to the Flying Fish Grill in Carmel as it has great Pacific/Asian fusion food. Please say hello to Rich the waiter for me, tell him that Andrew and Marilyn from Rumson N.J. gives our best. He could never forget us as we always visit Carmel during the baseball playoffs. Rich would be kind enough to call up a near by bar to get the Yankee's score for us. Forgot to mention that you should never skip a breakfeast at Katie's Place in Carmel.