I lived in Germany for 9 years.
I used to live in Augsburg (43 miles from Munich) and Altendorf by Bamberg (120 miles). We moved back to IL in Feb 04.
How much will you be paying for a room? Rooms in Munich are really expensive during the fest.
I've been to the Oktoberfest 12 times. I finally saw the opening day parade last year. Skip it if youare going that day. REASON: If you are not in a seat you will not be served. And unbelievable but true, seats fill up fast.
Are you adventurous? Do you speak German?
If you want I can arrange for you to get you a CHEAP room in a German farmhouse for 14-17 Euros (per night / per person / with breakfast (rolls, butter, jam and coffee)) if you're willing to drive a bit from Munich (40 miles) toward Garmisch (25 miles from). We stayed there for a weekend our last Oktoberfest and several times while we lived there when family came to visit because it's a day trip for all of crazy King Ludwig's castles.
Josef and Elizabeth Seemuller are really nice people and live in Kochel am See (Kochel by the lake). They probably have room. You can find them here:
They are #29.