We just returned from our Scandinavia trip and had the most delightful stay at the Vangsgaarden in Aurland. We stopped here for a night to break up the NIN tour. We had a small cabin right on the water, the food at the Gastropub is very good as is the hotel breakfast. Aurland is an easy shuttle up to the Stagastein viewpoint too. Aurland is 10-15 minutes by car to Flam but does not have the cruise ship crowds that Flam has. Definitely recommend staying here if you are looking to add a night on the Nutshell tour!
Agree on Aurland. I stayed at the Hotel Aurlandsfjord, across from the Vangsgaarden. It is a lovely, peaceful town with a great old church/cemetery. I took the minibus to the Stagestein viewpoint, and then took it all the way back to Flam, where I stayed an additional two nights at the Fretheim Hotel. Flam wonderful morning and night when most all tourists gone! The hotels were great, but slowing down and enjoying the fjords (Rib Boat Fjord Safari) and Stegastein Viewpoint - just wonderful to really enjoy the Nutshell!
We chose Vangsaarden because there wasn't any available lodging at Flam. The setting right on the water was wonderful, and the little town was very walkable. We ate at the Gastropub and ran into a couple we had met at a very small dining experience about a week earlier at Farstad. My only regret is we only stayed one night. My advice is if you have a car, stay in Aurland instead of Flam.