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Town, Island, Country:
From Kuta, Ubud is a relatively short drive north [about 1 hour] and you can get a taxi there for 55,000 Rupiah [about US$6] per person.
Ubud is a really relaxed and comfortable town with inexpensive villas, charming shops, cafes with free WiFi, and nice restaurants. It’s a great place to recuperate from traveling or to have as your only destination. Find a villa for about US$10 per night [NOT per person], stay a week and get to know the amazing surroundings.
During the day, enjoy the town and all it has to offer. At night, enjoy traditional music and dancing.