Hi, I was thinking of going there, too, but one should be careful these days.
It seems that violence is boiling up there (again):

www.tribuneindia.com/2008/20...&k.htm#2

:-(

i went to Srinagar last september and was enjoying myself very much there.
First weird thing arrival is to see all the militairs, that made me really feel awkward. But then i stayed at family of locals who took me around partially and for a couple of days stayed on a houseboat with Kashmiri wedding preparations going on in the backyard. Very great, very fiercy and proud women drumming and singing. Pity i had a slight fever, but after the heat of Varanasi where i spent the week before the weather was very pleasant, the nights fresh enough to be able to sleep.
well, as to more personal experiences, one has to bargain even more with riksha drivers than in the rest of india in order not to be ripped off. there's a beautiful market in a courtyard with lots of local arts and craft.
and there's are military people everywhere, the only Indian people. after a week i befriended myself with this and realised that even people with guns are human beings, felt pity for them that they had to stand all day long in dayheat and pollution.
i did not come across any of the violence or dangers the press talks about...but rumours and personal experiences from others say that there is violence and hasseling and suppression of the muslim population through the Indian, but as a tourist one does not come across it at all.
i really had an extraordinary time there, beautiful people, breathtakingly beautiful landscape.
Enjoy your weekend!
p.s. regarding accomodation: before going i noted a Green Acre Guesthouse, but cannot tell anything about it , since i ended up staying private and you will have to be really firm anyway to be taken to the place you want and not to the place the driver wants to take you.