May 2005 just returned from a ten-day visit to Budapest. Great relaxing city. My wife and I found the life and atmosphere a little like that of Paris. Also the building reminded us very much of Paris. Budapest is even easier to get around than Paris, they have a great public transportation system and we used the metro extensively. Waiting for a train on this system is almost non existent and it costs very little.
Walking is great also just keep your eyes open while crossing the streets! The food is simple but good and you can get a decent meal at almost any small restaurant. The one and only time I feel that I fell into a tourist trap was in having lunch at a pub called 'For Sale Pub'. The people seemed a bit strange for me and the atmosphere was supposed to be cute but ended up being dangerous and almost hole in the wall. I got gouged severely on the bill.
I stayed at a small pension called the Hotel Manzard Panzio. This was reasonable with Swedish style furnishings. The style of furniture that the international chain sells as kits. It was clean and the breakfast was reasonable. All in a quiet neighborhood.
Bottom Line... Stay away from, what I consider, tourist traps like For Sale Pub and you will have a great vacation!! Two thumbs up for Budapest!