Norway in a nutshell from BERGEN

What do you mean by best approach? I did Norway in a Nutshell just as you planned with an overnight in Flam but I did it the opposite way.

I suggest the Fretheim Hotel and splurge on the buffet dinner. It's excellent.

We did NiN from Bergen to Oslo with an overnight in Flam last summer. I booked through the NiN website and had no problems. We picked up the tickets at the Bergen train station the day before our travel and the whole thing went very smoothly. There is no confusion or difficulty when making connections.

If you enjoy kayaking or small boat tours, you could do that in Flam.

thanks for the response guys! Is flam the best place to stop or should I consider somewhere else for a night as well?

Hi Mikey,
Flam (pro-nounced Flome) is a very popular place to break up the NIN route. Some people really like it and others not so much. It is a cruise port, so this tiny little town can feel over-run if there is a cruise ship in port.
Other options could be Balestrand or Solvorn. Both of those could be quieter, but they are also farther from the NIN route.

IMO, your cramming too much into what is basically three and a half days.

I guess if you really need to see Oslo, Bergen, and one short day in the Flam area this will be okay. I originally planned to take the one day tour in Flam, but after considering what was important to me, seeing the fjords, I decided to spend more
time in the fjord towns. So glad I did. Bergen was a beautiful city, but the fjord towns and boat rides are what I remember.
I'd reccommend spending at least two full days in a fjord town. When you say you'll start the nutshell tour on day two, you wont't get there until mid day, and you'll be there at the crowded time for boat rides. And if it's raining, this will be your only shot. If you spend a couple of days you can catch early and late boat rides and give yourself a better shot at good weather. It rains A LOT.
As for Flam, not a fan at all. Touristy and packed with cruise folks. I stayed in Aurland which was a short bus ride away. Very quiet and I stayed right on the fjord. Balestrand, as others have mentioned is much more pleasant than Flam.

I'd pick Bergen or Oslo and save the other for another trip. Too much running around.

I posted a trip report not long ago covering my visit to Bergen and fjords. Painfully long, you've been warned.

https://community.ricksteves.com/travel-forum/trip-reports/norway-in-my-own-nutshell

Would Aurland or Gudvangen be a better choice than the Fretheim hotel in Flam?
Still trying to decide!!
thank you