First of all you need to know that Gerd & Noi recently re-opened (end 2012) at Bang Niang beach and is not located anymore directly at the beach (at Nang Thong). At the beach are the larger hotels/resorts located with private beaches and expensive food and beverage.
The new place is located at the first street parallel to the beach and it is a very cosy and quiet place. Check out their new website: http://www.gerd-and-noi-resort.com/
We stayed first 3 days and then 2 days after we returned from Similan.
The bungalows are clean and spacious, the staff wonderfull and very helpfull and their restaurant serves great food (also for non-guests !!). Free wifi provided in the restaurant area.
Although the location was not directly at the beach, this was not a problem at all. The advantage is that you do not hear the surf going on all night. The disadvantage is that you have to find a place at the beach where to sit. Well, that is no problem either, just follow the road to the right until it ends. There is a small bar/restaurant, which provides free chairs and nice food and drinks (of course you are expected to buy something when using the chairs).
It is a 10-15 minutes walk.
Furthermore there are some nice bars on the road to the main road (from Gerd & Noi go left and at the corner left) within walking distance, where you can enjoy good cocktails for just 99 Baht.
It is also very easy to visit the Similan Islands from Khao Lak. As well as day trips as for overnight stay. See my upcoming review for overnight stay at the Similans. If you stay at the Similans you could leave your luggage at the hotel and collect it upon return (this was no problem at Gerd & Noi's). As this return is in the afternoon, you better stay at least one more night at the place.
We certainly will return when we will stay again at Khao Lak.