I am going up there for two weeks starting Saturday. I usually stay in Corolla, or just north in the 4wd section. The best section for cycling is South Nags Head. There is very little traffic south of 64 on on hwy 12 (around milepost 16) and you can ride as far south as you can handle. One year I had a 20mph tailwind and I rode all the way down to the ferry at Hatteras, ~65miles. Of course when I got there I had to call someone to come get me.
Like the others have said there is not much to do in the area. For fine dining there are a couple good places in Corolla, and little or none south in Duck or NH, and there is little to no nightlife. But that is what I like to get away from. You can leave your boat at anchor right in front of your beach, jet ski around in the surf drunk for two weeks, then set off $3000 of fireworks you picked up in SC, and not get hassled by DNR a single time!