In Reply to: bali islands posted by kiwiaussie on Wednesday, 8. December 2010 at 16:16 Bali Time:
Lombok is not an island in Bali waters. It is an island of similar size to Bali, located about a 6 hour ferry ride away from Bali, or a half hour flight. See this map http://www.balihotelfinder.com/maps/index.html
As others have suggested, perhaps you are thinking of Lembongan island, which is a smaller island off Bali.
Lombok also has numerous small islands off it's coast, which in Lombok are referred to as Gilis. There are 3 famous Gilis that have been developed for tourism, being Gili Trawangan, Gili Air and Gili Meno.
Gili Trawangan has both upmarket and cheaper accommodation, and is also accessible by fast boat from Bali. It might be what you are looking for. It is very laid back - beach scene type place, while still offering some decent restaurants and hotels.
However, it's a long way to go, and the cost of getting there, plus time taken for travel, need to be weighed up.
An alternative is Lembongan which will not require as much travel.
Or, you could remain on the island of Bali and go somewhere less frantic than Kuta. e.g. Lovina, Candi Dasa, or somewhere like the artist village of Sideman on the slopes of Agung....
In all of this, Google is your friend. Do some research and you sure to find something that suits.