The Old Cape Road is located just off the N2 highway about 2kms from Knysna waterfront complex.
On arrival, we were greeted by a younger chap who works afternoons & evenings on the front desk. He was very friendly and helpful and showed us to our room. The majority of rooms are accessed from a verandah, from which there are great views of the lagoon with Knysna town on the left and the heads a few kms in the distance. There are tables and chairs along the verandah where you can sit out, have a drink and enjoy the views.
The rooms & en-suites are well appointed and clean with ceiling fans as opposed to aircon (this didn't cause us any discomfort). We met the owners Barbara and Ernest at breakfast, who were both lovely, friendly people who helped us plan our day's activities. Breakfast was good quality with the usual mix of cereal/fruit buffet and cooked and is served in a room which has fantastic views over the area.
The only downside to staying at the Old Cape Road is the traffic noise from the neighbouring N2 below. Most guest houses along the main road will suffer from this but the N2 is a busy road, Knysna itself can be a bottleneck, and freight traffic runs throughout the night.
To be fair, The only time we found it an issue was during an early evening drink on the verandah between our day out exploring and going out for a meal as this coincided with rush hour! As we were only staying for two nights and the guest house was full, we didn't mention it to the hosts as there is little they could have done about it. To put it in context, if you want complete peace and serenity from your accommodation, the traffic will be a problem but if you are used to living in towns or near main roads or you tend to spend the minimal amount of time at your accommodation because you're out and about, you will take this in your stride and enjoy the many positives this guest house has to offer.
In Summary, I would recommend that Old Cape Road but bear in mind the traffic noise and ask if you can have a room which is more shielded from the road noise.