Getting to Luxor
You can take almost every mode of transport to Luxor since it is the destination for most visitors to Egypt. There are regular buses, taxis and trains from Cairo and other major towns across Egypt. You can take a Felucca from Aswan along the Nile and there are even international as well as domestic flight options. The most comfortable way to get to Luxor from Cairo is probably an air-conditioned train. More information.
Note: A hot air balloon ride is probably not your usual mode of transportation but is a great way to see the sights and get some distance from the rest of the throng of tourists.
Getting Around
City of Luxor to Karnak:
Karnak Temple is on the northern edge of the town of Luxor. It is within walking distance from the center of Luxor city (just over a mile), but visitors may prefer to take a taxi or a caleche (horse-drawn carriage) each way from the center of town. Set a price before you get in to the caleche!
City of Luxor to the West Bank (Thebes):
Across the Nile:
You can take the passenger ferry from Luxor Corniche to el-Gezira. The ferry crosses the river constantly until late evening when it becomes less frequent. There are tourist ferries and regular ferries, either option will get you to the sites. You can also cross the river by private motor boat. There are always taxis waiting at the ferry terminal to take visitors around the monuments.
By Road:
You can take a taxi from Luxor which will take the long route across the new Nile bridge. There is also the 'arabaya' or local bus service which will drop you off anywhere on the circuit. Bicycles can be hired in Luxor or at el-Gezira. Tickets must be purchased at the ticket office (the 'taftish' is around 6 kilometers from the ferry, just past the Colossi of Memnon) before going to the monuments.
Where to Stay
City of Luxor
Most of the hotels are in the city of Luxor. There are plenty of options from luxurious to flophouse. For your real budget accommodation you will have to use a Lonely Planet guide and book on the spot. TourEgypt has a good list of luxury hotels and mid-range hotels. A very good hotel with pool and perhaps a Nile view won't set you back more than $75 a night.
West Bank, Thebes
There are fewer places to stay on the west bank but I did find a decent list of hotels. You have to excuse the very odd English on this site, phrases such as "Completely after the slogan small however finely tinker the village inhabitants at their touristic future" are a tad confusing.
