Sibiu
Sibiu had a good year in 2007; after falling behind in popularity to the likes of Brasov, Sighisoara and Cluj, it was named a Europe “Capital of Culture”, joining Luxembourg City. For the occasion, virtually every reasonable patch of surface area was restored and/or beautified to Saxon-licious greatness. The Old Town is hands down Romania best pedestrian wandering grounds, stuffed with great cafes, restaurants, bars, museums and an Orthodox Cathedral built to be a diminutive reproduction of Istanbul’s Hagia Sofia church.
The open-air Museum of Traditional Folk Civilization, 5km south of the city, is a must-see with 120 traditional dwellings, mills and churches from around the country.
Sibiu currently holds the title, in my opinion, for best accommodations options in the country, including two of my favorite Romanian hostels: Felinarul Hostel and Flying Time.
There’s also a wide variety of excellent nearby villages that can cumulatively fill several day-trips, like Cisnadie, Rasinari and Paltinis.