In Dresden, which is one of the most beautiful cities in Germany, they just reopened the Gruene Gewoelbe, which houses the magnificient treasures and trinkets collected by the Saxon kind August the Strong. It is a must to see this building finally restored to its former glory after it was destroyed in WW II along with the famous art galleries and the Zwinger.
Another nice town to see would be Prague in the Czech Republic. A lot of people love it there - the beer, the party, the style, the girls. You name it, Prague has it.
I concur on the Grüne Gewölbe (the "green vaults or arches"). The photos in the newspaper today looked fantastic -- although "treasure" is not everyone's cup of tea; speaking of which there is also the lovely porcelain collection. But beware, the Grüne Gewölbe is not open to the public until 15 Sept.
And speaking of Prague, the train from Dresden to Prague takes you along the Elbe, through "Saxon Switzerland", a lovely and scenic train ride.