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I spent 2 weeks in Cuba in April and was there back in 2004 too. Beautiful country with great, kind people. Havana is nice for a day or 2 but the beaches aren't very close. I highly recommend Varadero Beach, I got married there. However Varadero Beach is not the "real" Cuba as I was told by some locals. If you want to check out a really nice town, see Trinidad, Cuba. I was only going to spend 2 days there, but ended up spending 4.
I'm not sure if you're into staying with the the locals, but in any town you can find a Casa Paticulars. This is a Cuban home that is catered to guests. They give you a room and food for about $35 per night. It was a great experience.
Hit me up on ICQ if you want any more info.
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