Zakopane Poland

I liked this hotel: http://www.sabala.zakopane.pl/uk/index.php It's right on the main street, and I could watch the stall holders setting up in the morning and closing up in the evening. It's very much a tourist village. You can take a funicular up into the western range, where there's easy walking along the ridge line road. I also took a local bus to Kuznice, where two cable cars took me up to the top of Kasprowy Wierch. That was for snowy scenery, not hiking, though. I'd highly recommend going on into Slovakia, where prices are lower and there's plenty of good hiking. I stayed here: http://www.hotelsmokovec.sk/

We stayed here: http://www.rezydencjabambi.pl/
I would recommend it. We had a nice apartment at a good rate. It is a little bit of a walk to the main street but not bad. Zakopane is VERY touristy. If you go to the TI they will give you a map with some hiking trails. We did a good tough one up the mountain opposite the one with the funicular.

Zako is, as said, VERY touristy. The surrounding area is not.
We stayed (2006) in a hotel/guesthouse called Dom Wycasovna (sic) in the area called Cyrlla, in the hills above Zako. It was about a 5 min cab ride from rail station.