Hey MrMan
Sounds good.
Here are the places I stayed in Buzios and Arraial de Cabo.
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You can decide yourself if they are up to your standards, but i could recommend both, and both are centrally located. Marinadosanjos is a hostel but it is very very nice, with private rooms if needed. Not a dirty type hostel at all. More of an upscale place.
If you want to relax, I guess Ouro preto is a bit far to go, and Ilha Grande is the other side of Rio. I also went to Iguassu... From the Brazil side, you can do Argentina side in one day and then do Brazil side in half a day, and fly on that evening. There is an amazing bird park/sanctuary just across the road from Iguassu on the Brazil side whcih should not be missed. Its really cool, with toucans, parrots, hummingbirds etc... Anyway, good luck!
You can contact me if you have questions...