This was my first trip to Salem, and we went on a week-long driving excursion from Atlanta. We met with a few obstacles (we drove through the remnants of Rita or one of the other hurricanes), and it rained or drizzled the whole time, but totally worth it!
Salem is a great town, the whole thing is walkable and everything that is worth seeing is easy to get to. The size of the town only added to the atmosphere - not too big, not too small. While it can be a bit kistchy, it's also lots of fun, particularly if you get in the mood and go with the foggy flow.
Favourite spots:
The pedestrian mall was terrific with several places to sit outside and enjoy the people walking by. The memorial to the murdered witches was haunting, too. The witch house (Hawthorne's house) was very intriguing, and the age of the house astounding for someone from Atlanta.
What's really great:
The Hawthorne Hotel's restaurant was very intimate and they had great food. The art galleries all over the city were a special treat and I love going into these places - free art museums.
Sights:
The old Pickering wharf is operated by the National Park Service, and for a pretty cheap entry fee ($3-5) you get to see the Salem Maritime National Historic Site, the fee includes a tour of the customs house, the Derby house, and the sailing vessel Friendship.
Accommodations:
We only stayed in the Hawthorne Hotel, and I definitely recommend it. It was spacious and clean enough, though the bathroom was a bit small. Some of the rooms are even reportedly haunted! The public spaces in this historic hotel are wonderful, and it really does have a great atmosphere. The only disappointment was breakfast. It is not complimentary, and when we went down to order from the pay menu we did not get anyone to take our order, so we left.