On a tour through the Balkans with Intrepid Travel, we traveled through Montenegro. Sveti Stefan must be on a top 10 coolest islands list, so visit it if you can.
FYI for the James Bond fans: much of the movie Casino Royale is set in Montenegro, it wasn’t actually filmed there 😉
From what I recall in the Kotor old city: it’s full of restaurants, pubs, ice cream shops, cafes and cats.
The old fort ruins are a good 30 minute hike up above/behind Kotor and offer the best view around. It’s a little steep in some places, but wear decent shoes and you’ll be fine.
View more of my travel photos of Montenegro, including Sveti Stefan and Kotor in my flickr travel photo set: http://www.flickr.com/photos/kellygrainger/sets/72157624086181749/