Germany and Austria

Further into Austria you can go to Lech. For hiking it is fantastic. When you stay there in summer you get the Lech Card which gives you free access to all of the lift, gondolas, and hiking buses in the area. Wonderful area for the hiker and the scenery is excellent. Stayed at Pension Juliana while there...great place.

Garmisch-partinkirchen has some fantastic dayhikes. Our two favorites are (1) the gorge hike (Höllentalklamm) to the top, continuing on to the hut and then traversing over to the top of the gondola at osterfelderkopf for a ride 4000 feet back down to town http://www.wandertipp.de/Monatstipps/Osterfelderkopf/Osterfelderkopf-Monatstipp_31_2009.htm and (2) ride the same lift up to Osterfelderkopf and take the trail that takes you across the face of the Alpspitze to a shoulder (I think it is Bernadrinscharte) and you can scrable to the summit from there. The path across the face on ledges is considered a Klettersteig but it is easy; there is a cable to hold if you are nervous but the path is a good 3 feet wide and you do not need helmets or harnesses/carabiners. There is also some mountain biking around there, and I believe a bike path to Mittenwald, but we've never had the time. Need to go back!

If hiking is your key interest, Garmisch is probably your best option. I can't think of a town that has such easy access to so many amazing, but diverse Alpine hikes. I'm also a fan of Lech, which is much quieter than Garmisch. One key question- what time of year? Hiking season runs from late May to early October. Don't bother outside those months.

Munich's Alte Pinakotek (sp?) is one of my favorite art museums in Europe. A fantastic collection, not to be missed if you're into art at all. And the museum isn't huge so it's doable in a few hours.