OK I will throw out a couple of suggestions moving from Mendocino County driving South:
Town of Mendocino: Nice spot, basically a postcard.
Salt Point State Park: Cool Tidal pools, I believe it is good for Abalone fishing.
Point Reyes Lighthouse: Point Reyes is just off of US 1 to the West. Cool park with elk and a lighthouse out at the very tip. I think they have campgrounds.
Stinson Beach: Good spot to stop and get a sandwich, laid back beach town.
Pelican Inn at Muir Beach. I am not advising the drinking and driving, but this is a cool pub restaurant B&B on US1
http://www.pelicaninn.com/
San Francisco: I can give you a billion suggestions where to eat. You can find cheapish motels in SF. Downside is they may not be in the most happening neighborhoods. Upside is that the Meth is always freshly cooked.
Half Moon Bay: Another coast town. This is where the Mavericks surfing contest takes place. http://www.mossbeachdistillery.com/ is a cool spot to have a brew sitting by the firepit.
Santa Cruz: The boardwalk is probably necessary although it may be getting a little worn out.
Monterey/Carmel - The Cannery is touristy, Carmel is high end everything, but the Monterey Aquarium is pretty awesome.
Partington Cove: Seriously easy to miss, it is not marked on the West side of Route 1. Just this cool jetty you get to via a tunnel. Pirates and Rum Runners are the legend here. Short hike, nothing to worry about. http://www.hikinginbigsur.com/hikes_partingtoncove.html
Nepenthe Restaurant: You will probably fly right past it by Big Sur, but if you want to overpay for burger and weak service with an insane view check it out: http://www.nepenthebigsur.com/
Of course when you are in the Monterrey area you are also near Laguna Seca Raceway which I have yet to see.