Traveling south of Munich by car, what are the best places to stop and see for a week trip?

So much to see between Salzburg to Fussen and I understand you only have a week. Looks like you are focusing on towns, but for nature and picturesque places: Königssee and Berchtesgaden, Reit im Winkl/Aschau area, Tegernsee, Achensee in Austria, Garmish-Partenkirchen area with the Zugspitz for a few. Fussen is a nice town, but I think one night is enough, but to see both castles there you probably need a full day. Bamberg is also a nice city, but one day is enough on your short tour. For something different off the beaten path with a car, I could recommend the Franken Wine region (Würzburg, Kitzingen area). Small walled wine towns like Iphofen, Prichsenstadt, Dettlebach, all within a few kilometers of each other opposed to Bamberg.

If you are going to Salzburg (and I would recommend staying in Berchtesgaden and making a day trip to Salzburg) and then to Füssen, drive some of the Alpenstasse, which goes from Berchtesgaden to Füssen (and on to Lindau).

Start in Berchtesgaden and go through Ramsau to Reit im Winkl, following the Strasse. From Reit, the Alpenstrasse goes north to around Bernau, then west to the Inn. That section, IMO, isn't the most interesting. You might deviate from the Alpenstrasse there to save time, but pick it up again at Oberaudorf, on the Inn. The road over the mountain from Oberaudorf to Bayrischzell is one of the most interesting sections of the Alpenstrasse.

Spend the night in Bayrischzell and take the cable car up to the top of the Wendelstein. From Bayrischzell, "follow" the road to Schliersee, Tegernsee, and Kochelsee, then go south along Walchensee to Garmisch-Partenkirchen. You'll have to leave the road at Tegernsee and go to Bad Tölz to include Kochelsee, but the switchbacks out of Kochelsee headed to Walchensee are worth the detour.

From Garmisch-Partenkirchen, the road goes through Ettal and Oberammergau, from which you could take a side trip to Linderhof, past Wieskirche, and on to Füssen.

The old town Partenkirchen area of Garmisch-Partenkirchen has the cobblestone streets that still follow the old Roman road through the area as well as really lovely traditional architecture in nearby residential areas. The trip up Zugspitze gets raves, but is not cheap and prone to getting fogged in at times, (we had fog issues when we were there last month, and snickered our way up Mount Vank instead) so if the top is looking too clouded in, there are a few other cable car options for nice Alpine views that might be clearer:

http://zugspitze.de/en/summer

Mittenwald is excellent. Stay at the Post Hotel

Sounds like a good list to mull over. With a car, it's easier to keep your plans flexible. Happy planning!

If you are considering Rothenburg odT, that is not south of Munich. If that is the kind of place you are looking for have a look at Schwäbisch Hall, which while also not south of Munich isn't especially far, has few (American) tourists, is easy with a car, very scenic, and - if your knees are up to it - a very nice church in the centre with many many steps up to the front door. The town is not flat.

Have a look around at http://www.schwaebischhall.de/en/tourism.html and be prepared, if you have looked for lodging in the more touristed areas, to be pleasantly surprised by the relatively lower prices for equivelent places.

BTW - when you are looking at Rothenburg od T, note that it has a "u" at the end, not an "e".

"f Bamberg worth a night stay or is it better with 2 nights in Rothenberg?" " We love the experience of local old taverns and local fair."

While not exactly devoid of tourists, I prefer Bamberg infinitely over tourist-overwhelmed Rothenburg odT. It's worth a visit for the unique Rauchbier (smoked beer) alone, which I haven't seen sold anywhere else. Not even in nearby Nürnberg. Plus, it's just a really nice old town. Go to Rothenburg if you want to see souvenir shops and hundreds of other tourists taking pictures. Don't get me wrong, it's an attractive town. But it's status as a singular tourist destination par excellence has more to do with marketing and it's strategic location between the Mittelrhein and Munich then anything else. It just isn't as unique as the travel literature suggests.

You have mentioned mainly towns, which are sometimes not that car friendly. Bamberg is a traffic maze which is better visited by train. The same can be said for Salzburg.

The main advantage to have a car in Germany is to see the countryside. One advantage to Rothenburg is that it is small enough to park at the edge of town while staying there and make easy day trips to small towns the area: Dinkelsbühl, Ochsenfurt, Marktbreit, etc. Rothenburg does a have tourist reputation and tourist shops, but also a wealth of rooms and restaurants.

With a car, I think I would find a base or two and make day trips. I have driven in Salzburg a few times and did not care for the traffic but love the area, especially the nearby Salzkammergut. I have lived in the area of Rothenburg twice and found the scenery inviting and very accessible by car. The area around Füssen is also nicely done by car: Oberammergau, Ottobeuren, Wieskirche, Ettal Abbey. Schwäbisch Hall is extremely attractive and there are many sights in the area, like Comburg Abbey.

You might consider looking at Michelin Green Guide of Germany which is aimed at auto travel. ADAC publish a very complete atlas that highlighted sights and scenic byways (ADAC StaßenAtlas). There are so many nice small places to visit that no travel guide can mention them all, which makes the ADAC atlas so handy.