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When visiting Croatia the smartest option is not to worry about accomodation until you arrive. Whatever destination your ferry / bus arrives there will be some locals waiting with signs to offer you a place to stay. Having recently island hopped for two weeks (July 07), we never had any trouble finding a place to stay and the price range between £10 - £15 per person per night. There is room for negotiation and the private accomodation is the same cost as backpackers on some of the larger islands...If you manage to visit the quieter island of Vis then I recommend a day trip to the Blue cave on Bisevo island. After visiting the attraction the boat drops you on a sandy beach on the other side of the island for the afternoon and it is a very pretty / relaxed place to spend the afternoon. There are two restaurants there overlooking the water and well worth the visit.
If you are considering going to Montenegro - then avoid Budva if you want a quiet time / good beaches. Stick to Kotor. If you want to party then definitely head to Budva because the nightlife on the beach is like nothing else I have ever seen...
Definitely visit Croatia - a truly beautiful country...
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