We stayed in Rafailovici, a small village on the Budva coast, August 5-19 2007. We had been expecting a relatively undiscovered and therefore relatively underused coast. What we found was skyrocketing tourist development that resulted in extremely crowded beaches, large hotels that "privatised" the beaches and an infrastructure that was struggling to cope with the numbers of people visiting.
The coastline and the countryside inland are beautiful, with some excellent places to visit. Skandar Lake was stunning, Cetinje Town offered an excellent insight into Montenergian history, and the old towns of Budva and Kotor were unlike anything we'd seen before. Kotor Fijord and the area on its extensive shoreline was extremely attractive, clean and relatively uncrowded.
The weather was beautiful, some of the restaurants were excellent and generally the local people were friendly.
However, as well as the very crowded beaches, some of which were (illegally) charging up to 25euros admission, the roads were scary and there were real problems with the water supply in the village. Water pressure was variable, and the supply disappeared daily, usually from 16.00-22.00 hrs, but sometimes at other times as well.
Overall, a country really worth visiting, but possible not during August!