Thanks for all the suggestions everyone! I am having a hard time choosing now. trying to narrow it down between Cannon Beach, Lake Tahoe, Monterey, Santa Barbara and San Francisco! Way too many options now ...

Carmel sounds like it would fit your requirements perfectly. We rent a quaint cottage there for about $250/night and enjoy walking to the beach or into town. You could drive down the coast to Big Sur where the coastline is rugged and beautiful, there are more beaches, and some short (or long) hikes that would be perfect with a baby in a backpack.

Any tips on where in Carmel to stay? Are there any ocean front properties that anyone recommends?

cleo, what price are you willing to pay per night? That might make a difference as Santa Barbara and Carmel are pricey during high season, although both are wonderful!! Lake Tahoe is very nice to but don't plan on swimming in the lake unless you can stand frigid temps! How about Pismo Beach? You can get a direct flight from Seattle to San Luis Obispo, which is just 15 min. away.

laurenzo - hmmmm ... it kind of depends on how much the flight will cost or if I end up using frequent flier mileage than we can afford even more for the hotel. I don't want to spend more than $2000 total for airfare, rental car (assuming we need one?) and hotel for 4-5 nights.

Where is Pismo Beach? I'll have to research that one ...

Another question for all you experts! What kind of weather can I expect in each of these places at the end of August/early September? I have narrowed it down to Carmel, Lake Tahoe, Santa Barbara and Cannon Beach (if you can consider that narrowing it down!). Upper 70s and lower 80s is what I would love to find. What do you all think?