London is wonderful. Incredibly expensive--prices are about the same they would be in the US, but the pound is worth twice the dollar. A pint or two of beer and a sandwich in a pub will run you upwards of $20. Great city though, I really loved it.
Ill echo the Tuscany suggestion. Just got back from there (Florence for several days with a day trip to Siena) and loved it. Not too expensive, great food, great wine, gorgeous countryside... It rocked. If you're backpacking, its pretty hilly, but that could be a good or bad thing for you.
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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato
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