Hi! 

Within Jerusalem, you won't need a car. Public transport (buses, mainly, and the new tram line) is very good, and you can't really take a car in the Old City anyway. To get to Jerusalem from Ben Gurion, I would recommend a group taxi. Nesher is the main company. It's more expensive than the bus, but cheaper than a private taxi. They wait outside the airport and go when they're full. For the return journey from Jerusalem, you'll need to book in advance and let them know where to pick you up from.

For accommodation, it depends on your budget. The Abraham Hostel on Davidka Square is meant to be very good for a cheap place to stay. Otherwise, convents and religious places often provide really good accommodation - with character - at reasonable prices, and you don't have to be religious - they welcome people of all faiths or none as long as you're respectful.  I stayed at the Bridgettine Sisters Guest House on the Mt of Olives, but there's also the Ecce Homo Convent and the Armenian Guest House on the Via Dolorosa (friends of mine have stayed in both places and recommended them). 

Food wise, eat where the locals eat and you won't go wrong. Machane Yehuda Market is fantastic - market stalls with fresh produce, and lots of cafés and restaurants. Be aware that almost all restaurants in Jerusalem are kosher, so you'll get meat restaurants or dairy restaurants, but not the two together. 

Enjoy your trip (and travel safely!)

In Jerusalem you do not need a vehicle, it's a small city and taxi's are best for travel within Jerusalem.  If you want to travel outside of Jerusalem to the north to Tiberias and the Sea of Galilee & Golan Heights, a vehicle is an absolute.  

Also to visit Masada & the Dead Sea, which is only 1 hour from Jerusalem, a guide & vehicle is needed.  

Private guides with a vehicle average $550-650/ day.  There are also many options to join group tours, all companies average in price $99/ person for group tours. There are many options for Jerusalem day tours, Masada day tours, Caesarea & Israel's Coast day tours, Tel Aviv day tours, etc... I recommend you book all touring in advance of arrival to Israel.

In Jerusalem I absolutely recommend a guide at all times, it makes a world of difference.  There is over 4,000 year of history to cover, religious, wars, it's a very dynamic and amazing city and a guide makes a significant difference in experience.

For restaurants, there are many websites that list them all, here are my personal Jerusalem favorites:   

Darna Restaurant
Ticho House cafe
Ryu Asian fusion
"Fish n Chips" stand in the Machane Yehuda Market
Rachmo
The Eucalyptus Restaurant

Good luck & safe travels!

-Shalom Stark

Consider going out to the The Dead Sea one day while you're there. Ein Gedi is the place to go; it's a nice little beach area with bathhouses, a snack counter and a big parking lot. 

We rented a car on our trip over there and drove from Jerusalem to the Dead Sea and back to the airport where we returned the car. Driving in the city is a bit stressful, but nothing to worry about if you're used to driving in big cities. Be aware that people honk a LOT :)

If you make it over to Tel Aviv, I've got a few restaurant recommendations for there as well: http://getdrawer.com/jwd2a/overseas

Enjoy the trip, it's a wonderful place to visit!

What is your budget? Easiest way from airport is Taxi, about 300 shekel. Group taxi, Nesher taxi ok.

Hotel and restaurants depend on budget.

Hi WenMing

I wouldn't recommend renting a car in Jerusalem, as it's very busy with traffic and not easy to get around without knowing the roads. Unless you plan visiting outside Jerusalem.. Better take Taxis and city pass
there's a lot of sites to visit in the Jerusalem, many hotels depends on budget, visit the food market a must.