Interlaken or Gindelwald?

Definitely not Interlaken. People always talk about Interlaken, but Interlaken is not in the Alps...it's the gateway to the Alps. So by all means head towards Interlaken, but stop only to change trains and head toward to the Lauterbrunnen Valley. On either side of the Lauterbrunnen Valley lie the tiny villages of Wengen (on one side) and Gimmelwald and Mürren on the other. These 3 villages are car-free and the scenery is beyond belief. The Lauterbrunnen Valley is also beautiful with its 72 whispy waterfalls. Grindelwald is a totally different village also accessible from Interlaken. You'll get on the same train heading toward Lauterbrunnen, but you will need to sit in the back of the train as the train splits and the back half goes to Grindelwald and the front half continues on to Lauterbrunnen. Grindelwald has some nice views of the Alps, but it also has traffic and lots of tour buses.

Tim has nailed it ( as usual ) ! Interlaken is just a place to switch trains. Have a great trip

During the off or shoulder seasons, when a lot of the lodgings in the mountain villages close down, Interlaken is a great place to base yourself. I like to stay here: http://www.lotschberg.ch
Patronized and recommended by Rick Steves.

Carson, Tim provided an excellent synopsis of the choices in that area. I'd definitely recommend staying somewhere other than Interlaken. Gimmelwald, Murren or Lauterbrunnen would be good choices. Grindelwald tends to be somewhat more touristy and expensive. If you plan on staying in the Berner Oberland, you'll need to specify Interlaken Ost as your destination station, for transferring to the local train. Happy travels!

What about the Mountain Hostel in Grindelwald? (not to be confused with the Mountain Hostel in Gimmelwald)
Any other suggestions for a hostel in Grindelwald?

If you do want to stay in Grindelwald, there is an HI Hostel (Hosteling International) above the town on the Terassenweg: http://www.hostelz.com/hostel/12284-HI---Grindelwald-Hostel. I believe beds in the dorm are around $44, but that may be the members' price.

of the 2, DEFINITELY Grindelwald! Use Interlaken more of a jumping off point (taking train, the TI office, etc.), but stay in Grindelwald-- incredibly pretty and picturesque. But I also agree w/ the post above re: Murren or Gimmelwald-- Gimmelwald is rustic, beautiful, scenic, etc.-- EVERYTHING you picture the Bernese Oberland to be. Check out Rick's Guidebook-- he's a HUGE fan/advocate of staying in Gimmelwald. In general, his suggestions re: how to spend your time in the Bernese Oberland are spot-on. Staying in Gimmelwald, you'll have easy access to 2 of the highlights-- Schilthorn/Piz Gloria and the Jungfraujock (sp!)-- 2 excursions you must not miss in the region. You'll be talking about both years after your trip!

The best location may well depend on what time of year you are going. If winter, Gimmelwald may be pretty quiet for a solo traveler. Wengen and Mürren are ski resorts and may not offer much else. Grindelwald is larger and offers more for the non-skier, including night life. If going in summer, I would prtty much reverse my comments. Grindelwald can be pretty full of tour busses; the other 3 villages are quietr and still offer lots to do.

It's going to make a difference depending how many days you have in the area. Fess up.

IMO Interlaken is charmless. We stayed in Wengen and loved it-plan to go again in June. Murren is also a good option. Gimmelwald is a nice village but hotel and dining options are slim. There are COOP grocery markets in Wengen and Murren and you can buy sandwiches, etc to take on your hikes-saves $$ on lunches. I imagine Grindenwald might be fine during ski season but I really did not like the town. A room with a view is essential for the BO.