Help with Nagono winter itinerary

We will have 10 days in Japan in late February, 2008. Arriving to and departing from Nagoya International Airport. This is our second time in Japan. (Our last trip: Osaka – Kyoto – Kanazawa – Takayama – Tokyo – Nikko - Hakone – Himeji – Hiroshima, during the cherry blossom season. What a great trip it was!)

This time we plan to head to Nagano/Matsumoto area, ski for a couple of days, see the snow monkeys, soak in a nice onsen, visit the Matsumoto castle and some temples, and enjoy nice scenery, cute towns etc.???… The trouble is, I am not sure what is the best way to do this? Should we get a JR Pass, or would we be better off buying individual fares (it looks like one way train trip Nagoya-Nagano is around 8000 Yen?) How useful is a JR Pass getting around in the Nagano area?

Should we stay in one place (eg. A ski resort) and do day trips from there? Or would we be better off staying a couple of nights in a ski resort, and then maybe a night or two in Nagano and/or Matsumoto?? Any suggestions for a great place/places to stay? We would prefer a Japanese style room, with onsen if possible, in a good location (pretty setting, close to restaurants, hot springs, skiing), for less than 20, 000 Yen per night/room. Is this possible?

What about Nagoya? Is it worth spending a couple of days there, or are we better off sticking to the Alps?

Thanks for any suggestions, hints and tips you may have!

How useful is a JR Pass getting around in the Nagano area?

Not so useful. It is useful to travel along the Nagoya - Matsumoto - Nagano route and between Matsumoto and Hakuba, a ski resport, but not particularly useful otherwise. I doubt that a 7-day Japan Rail Pass would pay off.

Should we stay in one place (eg. A ski resort) and do day trips from there? Or would we be better off staying a couple of nights in a ski resort, and then maybe a night or two in Nagano and/or Matsumoto??

It depends on the geographical details. For example, if you select Hakuba as your base, you could reach both Nagano and Matsumoto in day trips easily, however, if you select a different base, that might not be the case.

for less than 20, 000 Yen per night/room. Is this possible?

Traditional Japanese accommodation usually comes with two meals (dinner and breakfast) included. There are some but not many options available for 10,000 yen per person and night with two meals included. You might find something without meals, but note that not all Japanese ski resorts come with many dining choices outside the hotels/ryokan.

What about Nagoya? Is it worth spending a couple of days there, or are we better off sticking to the Alps?

It depends on your interests. Nagoya has a few interesting sights, e.g. the Toyota headquarters with factory tours:
http://www.japan-guide.com/e/e3308.html