Fethiye, 2 hour transfer i think, is a smaller version of Bodrum, cobbled winding streets,loads of nice eateries and shops.
It has a nice beach front and easy acsess to other places, like Calis beach, Hisaronu, Olu Deniz, slightly further afield on the blue bus, Kalkan and Kas.
Dalyan is also another nice place to stay, ideal for families all on the flat, nice village feel and friendly only 25 mins from airport which has to be a bonus.Small resort not spread out, nice beach.

Icmeler or Turunc would suit your needs, Icmeler is much bigger than Turunc.

bump

sorry to correct you joan but fethiye isnt 2 hours from airport about 45- 60 mins max depending how many stops etc as its nearer than olu deniz. we loved fethiye and olu deniz areas, i also love icmeler, depends what you are looking for, olu is nicer in scenery ,fab lagoon erc,but less selection of bars, shops etc compared to icmeler

Hi Dublin Angel please don't bump the topics - thanks

Turunc is nothing like Bodrum, it is very small with everything based along the sea front or the sytreet behind, no narrow winding streets or pretty white houses. It is nice in Turunc though, more like Bitez than Bodrum.

If you like narrow streets and old places try Antik Side. it's like going back in time.

Bodrum is bigger than Fethyie but there are some similarities. Fethyie has a good if smallish harbour with plenty of boat trips if you want to spread your wings.

I agree that Side may be worth a look at. The old centre is quaint, with winding streets, and is officially pedestrianised (although some ignore it on mopeds). Old ruins are scattered all over, and there is an amphitheatre. There are some great trips to take for a day, if you're into viewing some history, and the Manavgat waterfalls are lovely to see too. There's plenty to do in the evening, in terms of eating, drinking and haggling.

Some good pictures and info here
http://www.ourplaceinturkey.co.uk/side2.htm