Went to Dalhousie in the first week of May. This was the second stop on our journey - the first being Dharamshala. The road from Dharamshala to Dalhousie was covered in 3 1/2 hours. (around 140 kms). We stayed at the Manimahesh Hotel operated by HPTDC. A review of the hotel can be found here. Bookings for the hotel can be done online here.The hotel is situated very near to the taxi stand from where you can plan your local site-seeing. There is a tourist information center here as well.
A 2-3 hour taxi tour covers all the sight seeing points that Dalhousie has to offer like Panch Pula, Saat Dhara and Subhash Bowli.The real fun, I feel, is in walking around Dalhousie. The walk from Subhash Chowk to Gandhi Chowk offers some great views.