Sedona
Sedona's beautiful red sandstone formations have attracted nature lovers, Hollywood directors, and spiritual seekers for years. Its location along Oak Creek at 4,000 feet also makes it more lush and cool than much of Arizona (especially Phoenix, which is 2 hours south).
Sedona consists of 3 major developed areas: to the south is the Village of Oak Creek, to the north of "The Y" (the intersection of 89A and 179) is Uptown Sedona (eventually leading to Oak Creek Canyon and beyond to Flagstaff), and to the west of "The Y" is West Sedona.
Things to Do
Hiking
Passes - to park at many of these locations, you need either a National Parks Annual Pass or a Red Rock Pass; this Forest Service site explains the details, although GreatSedonaHikes has a simpler explanation
West Fork - beautiful hike along (and across) a stream through a deep canyon; relatively shaded so it's cooler than other hikes...known especially for the beautiful colors in the fall. The trailhead is off Highway 89A north of Uptown Sedona.
Boynton Canyon - nice canyon hike that also has a beautiful vista trail near the beginning (which takes you up to the "Kachina woman" rock formation, one of the vortexes)
Bell Rock - another vortex site, a short climb brings you up to a stunning view of the surrounding red rocks; to get up the rock, take the north approach (follow signs for "Scenic View" or "Court House Vista")
Red Rock Crossing - a short, flat, easy hike along Oak Creek, with several gorgeous views of Cathedral Rock in the back (and thus it's very popular with photographers, especially at sunset), which ends at the "Buddha beach", a shoreline that has a bunch of rock pile "Buddhas" which is also a vortex site
Cathedral Rock - one of the most iconic rock formations in Sedona; to go up the rock, take Back O'Beyond road to the trailhead
...these and other hikes are explained on wildsedona or sedonahikingapp; Sedona Monthly also has a Hike of the Month section
Vortexes
some New Age people believe that Sedona is home to energy vortexes (or vortices); John and Micki's Metaphysical Site has a good explanation and list of supposed sites
Jeep Tours
people apparently like going on Jeep tours through the countryside; Pink Jeeps is among the most popular
Galleries - Sedona has a lot of art galleries
Tlaquepaque Arts & Crafts Village is one concentration of such galleries, in a place made to look like a Mexican village
Dairy Queen Indian Stands - if you go up highway 89A towards Flagstaff, on the left side of the road in the parking lot of the Dairy Queen (at 4551 N Highway 89A), there are a number of stands selling American Indian art at pretty good prices
Chapel of the Holy Cross - cool chapel inspired by Frank Lloyd Wright, nice view; some believe it's a vortex site
Farmers' Market on May-Oct Fridays in West Sedona: http://sedona-farmers-market.com/
Montezuma Castle National Monument (~30 min south towards Phoenix off I-17) - it wasn't a castle and has nothing to do with Montezuma, but it's an ancient cliffside Indian village; open 8-5 every day, $10/person, $80/year national park pass accepted
Tuzigoot National Monument (~30 min south on 89A, sort of on the way back to Phoenix, also on the way to Jerome) is similar, day pass is good for both
Jerome - spooky old mountainside former ghost town
Places to Stay
www.sedonasuite.com - wonderful place with a great location (not too far from the heart of West Sedona but also walking distance to Red Rock Crossing park), with cosy rooms including a kitchenette and a Red Rock Grand Annual pass