I have traveled in August for the past two years, the first time for 2.5 weeks and this year for 3 weeks and I will also be there August 2003. I never had any weather problems other than a few storms here and there, but no big deal. It never put a damper on any of my daily plans.
I would recommend staying at Banana Beach.It is about a 25 minute walk to town(you cannot beat a nice walk along the beach), but you could get a taxi for 5us or rent golf carts, it is not bad at all.The restuarant should be open by then and there is also a very nice beach bar next door at Mata Rocks and a couple of nice restuarant close by.The rooms are just beautiful,you could get either the suites w/kitchen and an open up couch or just the regular hotel rooms.You cannot beat the owner(Tim) or his staff,they are very accommodating.They have two pools and the beach is nice,very well maintained,comfortable,well padded lounge chairs on the beach and at the pools. Also if you plan any trips the boats come right to the docks to pick you up,so you do not have to worry about getting to town to go on any tours.Email me if you need any more info I will be glad to help: email@example.com.