I stayed a week and a bit at the Coralia in one of their basic bungalows, and then a week and a half in the Hilton.
The Coralia seems to have a range of accommodation options, but the one I was in had no TV, so it was like sensory deprivation for me. It came to be that the call-to-prayer at some silly time in the morning was my only 'entertainment' for the day apart from sailing.
The Hilton has cable TV, so I spent the first few days getting my fix of that before I was back to normal.
Food was better in the Hilton than the Coralia, but both pretty good. Either way, I think I had lunch almost every day at the Pizza bar near Harry Nass. You can also eat in town as there are heaps of places to eat although I was concerned about my stomach so I never ate there.
If you want to eat/drink on the cheap you can smuggle food/drink into the hotel rooms. Just don't let the guards see it 
Where you stay may depend on if you have a female companion with you. The two star place looks okay. As long as its clean and safe it doesn't really matter that much. You will probably be stuffed after windsurfing all day in the hot sun.
How much does it cost to get there from Australia?
I agree Lake Garda is no good in October. September can be good though. Best June-Sept.
Dahab looks like it has changed a bit. I was there 18 years ago and it was just a slummy little place full of dope smokin backpackers.
When I stayed at the coralia in June I had an airconditioned room with TV and cable service plus buffet breaky and buffet dinner every day included in the nightly room charge. All I had to pay for was lunch which you can get at any of the restaurants/cafe and can be charged back to your room. As I recall I only had the standard room also....Send them an email and ask about it. I managed to get flights from Melb to Cairo and return for around $1800 on a special with Etihad airways at the time. I bought a flight with Egypt air from Cairo to Sharm, think it was around $100, all up I remember it cost me just under $2K to get to Sharm and back.
Then it's 250€ a week if you want 5 star all inclusive treatement...
Then you also have an option of going to Turkey...they include windsurfing gear in allinclusive packages...similar price for it though...
I am just packing last bags for my trip to Europe and try to book some tickets to Egypt. Suddenly I am reading about some stupid visa requirements !!
Do we need visa before we go to Dahab for windsurfing ? !
I don;t want to mention about terrorist attack and kidnapping.
Travel to Egypt could be more exciting this days that windsurfing itself.http://www.smartraveller.gov.au/zw-cgi/view/advice/egypt#Entry_and_Exit_Requirements
I got mine from the Egyptian embassy. If I had known you could get it from the airport I could have saved a bit of time!
I think I even dropped it off personally just to make sure it came back in time for the trip.
