to rail pass or do point to point, that is the big question.

Without taking a detailed look at your itinerary, I would guess that you're right that point-point tickets for your itinerary will be less than a railpass. I last bought a railpass (German Rail) in 2000, and after my trip I compared the railpass with what I would have spent for the train I actually rode, and I figured I just about came out even. However, I could have substituted a few trains here and there and spent less. Since then (10 trips), I have always checked my itinerary for a railpass vs point-point tickets, and a railpass has never come close to being cost effective.

However, part of this is because I tend to stay in a small area and use regional trains, but that looks like what you are doing, too. All of your travel in Germany can be done with regional passes (Bayern-Ticket, etc) for a lot less without spending a lot more time.

In Austria, Passau to Bad Ischl to Hallstatt (actually from the time you enter Austria) can be done on regional trains with an Einfach Raus ticket for 35€ a day for up to five people.

What are you doing wrong? Nothing. You're doing it right! All of your German stops are in Bavaria, so you can travel all day on regional trains after 9 am for 27 euro total for the 2 of you. All day on weekends.
http://www.bahn.com/i/view/USA/en/prices/germany-regional/bavaria-ticket.shtml
And you don't have to shell out the money upfront. Just buy them out of vending machines (there is a small service fee for buying at the ticket window). As Lee pointed out, a similar deal is available in Austria, Tickets in Slovenia are cheap, and same for Italy if you use regional trains, which with a lot of short hops, won't really cost any time over fast all reserved trains.

To add to Sam's information about Bayern Tickets, here's a trick I learned from Lee in another post. If you want use one to travel on a weekday before 9 AM, just buy a ticket from your start station to the station you will be at around 9 AM, in addition to your Bayern Ticket. On regional trains, this will be quite cheap.

For Italy, you may be taking some faster trains. These have discounts if you can buy in advance and can commit to non-refundable, non-exchangeable tickets. However, the full price isn't too high, so you could also buy at the last minute. Note that on fast trains in Italy, they are all-reserved. Even if you have a rail pass, you still have to buy the reservation. If you aren't using a pass and buy a ticket, it comes with a reservation for a SPECIFIC train. If you take any other train, you get a heavy fine. If you're going to take a different train and have an exchangeable ticket or reservation, you have to change it before getting on the train.

Good for you for doing your homework! Yes, rail passes often do not pay off these days, as you're learning.

Bayern-Ticket, no trick. I've actually seen this recommended by the Bahn. You can't use the Länder-Ticket before 9 AM (for me, travel before 9 AM is uncivilized, anyway), but you can travel with regular tickets before that time. Just buy regular tickets to cover your travel up to the first station after 9 AM, then use the Bayern-Ticket after that.

Lee: I wasn't using the word "trick" to imply that this was in any way underhanded - it's certainly not. I just meant that there was no need to feel constrained by the 9 AM Laender Ticket weekday start time. It's a totally legal and clever work-around, but one I hadn't personally thought of, which is why I gave you credit for posting about it.

Hi,

Great that you're going to Bad Ischl, be sure to visit the Kaiservilla, all the more so this year. That can be done by bus from Salzburg.

I would not get a Select Pass, not necessary for where you're traveling, not enough zig zag, long distance rides, etc. Basically, you don't need it since there are two of you.

Wow, so glad I asked!!!! Thank you, I knew I couldn't be that far off! So we will look to local, all day tickets and not go the way of the select rail pass. I thought it seemed awfully high.
thanks again. Can I ask one more, I do like to just go into the station and buy a ticket and go, but it sounds like in Italy I will need to plan ahead, but anywhere else I need to be thinking ahead?
thanks again.
kat

So I just went online and looked at links and found exactly what you said I would, great! Now, where do I look at the local rail for italy, slovenia, croatia? Any help there?
kat

"Venice, Padua, Bologna, Parma, Genoa, Riomaggorie, Florence"
All of these legs can be done with cheap regional trains, which you can buy at the station. You might want to buy in advance the day before just to save time at departure. The ticket does not become active until you validate it on the platform machine just before boarding. Do not forget to do this, as you can be fined 50 euro or more if the conductor finds you on the train with an unvalidated ticket.
The short length of these means there is not a whole lot of advantage to going with fast trains. Look for trains marked "Regionale Veloce" as they make fewer stops so they go almost as fast as express trains.
Edit- http://www.trenitalia.com/trenitalia21.html for Italian trains. Prices for regional trains shown only for 7 days out.
Edit- http://www.slo-zeleznice.si/en/passengers/slovenia for Slovenian trains.
Edit- If you want to splurge, take the ferry from Pula to Venice, 70 euro pp, a reservation a must.
http://www.croatiaferries.com/venice-pula-ferry.htm

thanks! Actually are splurging and taking ferry from Rovinj to Venice!!!