I assume you'll be coming down from the Manteo region and heading south down the OBX. If you'll be camping in Hatteras then the National Park Service campground is the best and cheapest - it's right beside the lighthouse, next to beach accesses and convenient to town. However, having lived here my whole life, I can tell you that Hatteras is much more crowded in the summer time and Ocracoke Island (like UNCC said) is much less crowded that time of year (although still busy). If you stay in Ocracoke, there is a national park ground there that has camping, showers, etc and there is also a lighthouse there, and the beaches are easier to drive on. The sand in Hatteras is notorious for getting people stuck, but Ocracoke's beaches are a bit better packed. For lunch or to grab a beer, hit up Howard's Pub - it's on the outskirts of town. For breakfast go to the Pony Island Motel & Restaurant - have the shrimp omelette! There's more to do in the northern parts of the islands, but if relaxation is what you're after, then you owe it to yourself to check out Ocracoke. As kids, we always stayed in Ocracoke and took day trips to Hatteras and Nags Head, Kill Devil Hills (Wright Brothers Memorial) etc. Like I said, I live about an hour from there and would be more than happy to give you any more tips or ideas for the trip!