Ok, since you got some good advice on the north end of the trip, I'll mainly focus on the south end. However, in the Big Sur area, I'll recommend the River Inn as a relatively affordable if unpretentious place to stay. About 1/5 the price of Post Ranch Inn or the other mega-$$ place (I forget the name). As for Monterey, ok so it's rouristy but the aquarium is pretty special, and getting some clam chowder on the Monterey Pier and eating it with the Sea Lions yapping at you is cool.
Working the way south, Hearst Castle is a must-do...touristy but spectacular in it's own right. Cambria is a pretty cool town just south of Hearst Castle.
Ok, Santa Barbara to San Luis Obispo...the central coast is an amazing place, prob my fac area in CA. In fact, just got through camping at Lopez Lake with my wife's family.
Where to stay: 2 places. On the south end in the Santa Ynez Valley, the Los Olivos Grand Hotel is quaint but first class all the way. Gateway to a lot of wineries, and FWIW, that's where all the guests stayed for Michael Jackson's wedding years ago. Further up north, the Sea Venture is at the south end of Pismo Beach, walking distance from the pier and downtown, feautures a great restaurant and has ocenfront rooms WITH hot tubs on the balcony. Highly recommended.
Where to eat: First of all, try to be in the area on a Thurs night and experience the SLO Farmer's Market from 6-9PM every week. Great food up and down the street. To me, the central coast is about Santa Maria style BBQ...meat (primarily beef) cooked over red oak. 3 great places...Hitching Post (Casmalia and Buellton), Far Western Tavern (Guadalupe) and Jocko's (Nipomo). In fact, the HP in Buellton was featured in the movie (darn, forget the name...won the best pic Oscar last year). All are unpretentious places...Guadalupe is a farming town and Jockos is kinda scary in some ways. However, an hour or so in the bar at Jocko's and a great meal there (in addition to the beef, they have an unreal pork chop) will leave you stuffed and content...and you'll probably make some friends along the way. Try to get a table overlooking the pit and make sure you order your food grilled over the oak. Trust me.
For a more high-end meal style-wise, there is a great restaurant in a little town near Santa Maria called Orcutt. The place is called Chef Rick's and write-ups have always been marvelous even if I have never been there. One other gem of a place is an ice cream stand in Arroyo Grande called Doc Burnstein's.
As for Solvang, fun place to go to and get some bakery goods or fudge, but I never found a good place to stay or great restaurant that made it worth more than a half-day trip.
Another option to consider from drive-fly is drive-train. Amtrak operates between LA and Oakland or San Jose, and the Coast Starlight is a wonderful train. The ride between Ventura and San Luis Obsipo in particular is spectacular, with much of it riding literally on the edge of the ocean (much like Highway 1 does from Hearst Castle to Monterey).
Bob in RSM, CA...yes, I know, it's a long way from Chicago