Where to go
Most people visit Bali for a sun and sand holiday, but there are many different beach areas to choose from. If you want to be where all the action is, the Kuta / Legian area has the biggest selection of shops, restaurants and entertainment venues. It's worth noting that most of the action in Kuta is away from the beach. The ocean here is popular for surfing, which makes it less than ideal for anything else. If you want to swim, wind surf and lie on the beach, or are looking for relaxation rather than parties, then think about Sanur on the east coast.
If you like big hotels, or have points to blow at the big chains, then you may end up at Nusa Dua. This is also where the most well known golf course, the Bali Golf and Country Club, is located. South of the airport is Jimbaran Bay, home to a few high end resorts, such as the Bali Intercontinental and the Four Seasons. If you're really into design, then you may want to check out the Bali Hyatt, the hotel that started the whole “;Bali style”; internationally.
If your visit is for more than a few days, you may want to consider staying in more than one place. The best alternative to the beach resorts is the mountain arts colony of Ubud. There are all sorts of accommodation, in all price ranges, in and around the city.
For longer vacations, you may even want to consider exploring other parts of Indonesia. An interesting place to start would be the central Java city of Yogykarta, with its ancient monuments such as Borobodur and the Prambanan.