We stayed at Dunshee's the first weekend in January 2006. Susan (the proprietor) has been hosting for more than a decade and is very professional. The home-cooked breakfasts (silver-dollar pancakes one day, green chile egg souffle the next) were great. Dunshee's is located only three blocks from Canyon Rd., the famous art gallery area. El Farolito, the tapas restaurant, is within easy walking distance of the B&B.
Our room was in the main house; there is also a casita available, which we did not see. Our "room" was actually an entire wing of the house - the bedroom has a lovely kiva fireplace, with firewood included. From the bed you'll have a view out onto an herb garden.
One caveat, if you're allergic to pets, or afraid of dogs. Susan has two friendly dogs.