(Update Mey 14 '08)
There is a string of small, friendly losmen along the two main roads, but they tend to go into hibernation when few tourists are around.
Four places sit next to each other along the northern road and offer standard accommodation almost identical in price (25.000/35.000 Rp for singles/doubles).

They include the pleasant Pondok Wisata Mekar Sari; the friendly Onong Homestay; the large Pondok Tetebatu; and Wisma Diwi Enjeni, with the best views and setting.
The road ends at the charming, colonial Soedjono Hotel ( bungalows 40.000 Rp, supperior rooms with hot water 75.000 Rp). It has great views, a large swimming pool and a mix of rooms.
The road heading east from the southern intersection, nicknamed Waterfall rd, has a number of good options. Cendrawasih Cottages (cottage singles/doubles from 35.000/40.000Rp) is a clean, little place that several readers have enjoyed over the years.
Pondok Wisata Lentera Indah (Green Orry; singles/doubles from 30.000/35.000Rp) has a range of comfortable bungalows.
Losmen Hakiki (singles/doubles bungalows 35.000/40.000 Rp, large bungalows 50.000Rp), 300m beyond across a pretty valley, has some charming accommodation.
Salabuse Restaurant at the southern end fo the norhtern road, is a place to try for Sasak food. The service is slow, but prices are low and the food is good.
Tetebatu Café , along the eastern road, has always been one of the in spots, but like everywhere is surffering the effect of few diners.
Warung Harmony, at the top of the northern road, is probably the best all-rounder. Western, Indonesian and Sasak meals are cheap, the setting is pleasant and the owners are friendly.