1) Well first of course you have to get to Kyoto. If you are flying into Narita airport in Tokyo, you will need to take the train to Kyoto and that can be a bit costly. However, tourists can benefit from a Japan Rail Pass (http://www.japanrailpass.net/) that is well worth its price if you plan on doing a bit of travelling while you are in the country. A one week ticket is 28,300 yen ($335 US or £206 GBP), and it allows you to go practically anywhere in Japan except on the super fast trains - and apparently now they also allow you to go on the Tokyo's metro system as well. A trip or two back and forth to Kyoto makes it well worth the price, and there are also 2 and 3 week tickets. Anyone who lives in Britain and travels by rail wont find these prices uncomfortable! Of course you can also fly into Osaka which is much closer to Kyoto.
2) For accomodation, prices are quite reasonable. I'm speaking from the point of view of cheap hostels, of which I have stayed in 4 in Japan (plus a ryokan and a standard hotel), and found them really well run and very clean, and very affordable at between 2500-3000 yen a night (about $30 USD or £20 GBP).
Here is an example of a hostel I stayed in in 2006 that was very central in Kyoto: http://kshouse.jp/kyoto-e/index.html