IT's a GREAT place to spend a weekend. It's a very nice beach community. The streets around the beach are lined with lots of nice little shops, and plenty of interesting and good restaurants. There is also a pretty nice boardwalk.
As for places to stay, we stayed in a Bed & Breakfast. But, there are a bunch of hotels and what not. Sands is on the beach, looked like a very ngice place to stay. All in all, it was a very fun and relaxing weekend (even though the weather was overcast.)
If you go, make sure you get some Thrasher's Fries. It is a little hut that sells french fries down by the boardwalk... pretty damn good.
Check out this site: www.rehoboth.com
If we had time, I would have liked to check out the DFH Brewery too which is only 15 miles away from Rehoboth.
We went to lunch at the pub, got there at like 11.30, but they did not open till 12. I was amazed out how many people were waiting there for it to open. The place was half full as soon as the doors opened. Weekend nights they have music there. All in all, it is an extremely well run place (of course with top of the line beers!)