Buzios is a small resort town about 100 km (60 miles) north of Rio. It reminds me of the the French Riviera in many ways. There are three main attractions in Buzios: The beaches (of course), the rugged coastline and the small shops and restaurants in town.
To see why Buzios is so nice, just look at the map below:

More than anything, Buzios is beaches: on the map each letter is a beach, or a group of them. My favorite ones are: Azeda and Azedinha (AZ), Ossos, meaning "bones" (O), Joao Fernandes (JF), ferradura, meaning "horsehoe" (H), Forno, meaning "oven" (F), Tartaruga, the "turtle" (T) and Geriba (G). The downtown beach is called Praia da Armacao (A), but it is only suitable for watching fishing boats bringing their catch in.
What you have is a peninsula composed of rocky cliffs and about two dozen small sandy white beaches. Buzios has some nice Hotels and Inns (called pousadas). The town area is quaint, and food is ok (not on a par with restaurants in SP and Rio, not even close!).
Buzios is famous for two women: Brigitte Bardot and Angela Deniz. The first is the famous French actress and the second was a well known society figure, married into a traditional Sao Paulo family. Angela was kind of a wild lady. She was first known as the Pantheress (Pantera Mineira) and evidently high society life was too slow for her, so she added wild sex and drink. To make a long story short, she was shot by her husband, who was tried and acquited. He claimed that she had insulted his "male honor" or something like that. It was the OJ Simpson event of the time. Anyway, Angela was shot in a house on the Praia dos Ossos, a very small beach not far from where our family usually went in Buzios.

The main problem with Buzios is the stinky rich people that build big houses, drive up the prices and try to keep the beach for themselves.
Now, a few small not too expensive sleeping places I recommend:
Joao Fernandes Pousada
Rua Joao Fernandes 100, Buzios, CEP 28905-000. Phone: (0246-23-2299) Fax: 23-2176
Vila do Mar
Travessa dos pescadores, 88 - Buzios CEP 28950 Phone: (0246) 23-1298 Fax 23-1466
Pousada do Sol
Don't have an address, but this is where BB stayed. It is right downtown. Very rustic, at least when we were there.
Buzios can be found on Web at www.buzios.com.br