Just back from 2 weeks in Bali, loved every minute of it. For what it's worth here are some of our recomendations and tips for new visitors. Not everyone will agree with our choices, but Bali is whatever you want to do or see.
Being first timers ourselves and armed with all sorts of stories both good and bad about money changers beach hawkers and the like, we were a bit apprehensive at first but soon got used to things.
We stayed at the Bumi Ayu Bungalows in Sanur. Much quieter than Kuta and cheaper than the beach front hotels. Bumi Ayu has a large pool with bar service, (plenty of Bintang)good rooms with A/C and a reasonable menu in the restaurant. Say hi to Sony and ask him about business cards - he runs a good side line in silkscreening cards and stubby holders.
The beach is only a couple of minutes away and offers the usual massages, temporary tattoos, glass bottom boats, Hawkers, Scuba and snorkelling. We went on a dive with a crowd called "Amfibi". It is run by an expat German and was the cheapest reputable dive group we could find.They operate from Sanur, just ask hotel reception to phone them.
Shopping around Sanur isn't as hectic as in Kuta but there are still plenty of hawkers to contend with on the Beach, everything from duck puppets to laser pointers. Watch out for women with young babies begging for money.
Money changers are everywhere. Most seemed pretty honest though one tried the "let me recount it (and slip out a few thousand rupiah) routine". Once you have counted the money, hold on to it. Be aware of the ones who charge a commission, there are plenty who don't and will generally give as good an exchange rate. The hotel's rate doesn't come any where near what you can get on the street.
If you're not too keen on the bartering that is endemic in Bali, visit Jeni at shop 29 in Sindhu Beach Markets. Her business card says it all " No Bulldust Jeni" she calls herself. Jeni sells just about everything in the way of clothing, quilts, shoes plus some souvenirs BUT SHE DOESN'T BARTER ! Her prices were the lowest we found bar none.
Even if you don't buy anything she's worth visiting just to get an idea on the sort of prices you should pay.
The beach restaurants and cafe's are good value, the Bonsai seemed to be popular and got my vote. They have a great menu which includes both western and local fare. Try their BBQ seafood in the evenings.
Some of the more cultural activities we tried involved a trip to the Besakih or Mother Temple, worth the trip for the magnificent view but watch out for the Temple Guides who latch onto visitors at the bottom of the hill and then expect about 40,000 Rp when you get back. You don't need a guide to enter the temple but you will need a Sarong. Buy one at Jeni's before you go! They're much cheaper than at the temple. The price of drinks also seems to increase the further up the temple steps you go so take something with you, it's a long walk.
And for the more adventurous, white water rafting on the Ayung River. Great fun and not too strenuous although the climb down to the river and back up at the end is a bit tiring. If a nice young women meets you about half way along the river offering drinks, THEY'RE NOT FREE, be prepared to pay about 20,000Rp for a can of Coke (about twice the price in the shops)
All up, Bali was a great holiday. Two weeks seemed a reasonable time, any less and we would have been pushing to do some of the things we wanted to do. There's still plenty more to see and do... next time.