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As I finally got down to running Whispering Cairn, I actually ended up 'running Diamond Lake' for most of the night as the players focused on character development and NPC interaction.
One of the players was the 'fourth son of a noble' from outside of town (I suggested his family was from one of the manors south of Greyhawk as shown on the maps from the boxed set). He rolled into town with only 3 orbs to his name, and after having met up with the other players (who all live in various spots throughout town), decided to get himself his own place for the night.
Following up on leads on places to stay, he checked out Jalek's and was promptly disgusted at it's conditions, his 'room' lacking even a door or a bed (and I included a chamber pot, which was full).
His other lead was the Able Carter, where he learned a room for the night was 1gp. He ponied up the cash, and after a meal earlier in the day was down to a handful of commons.
I'm pretty sure I'm reading the town right in that there are really only 2 places to stay - Jalek's and the Able Carter. I know gnomes can probably crash at Tidwoad's (I'd allow a particularily diplomatic character that option perhaps as well).
Has anyone else played such that other options in town in between are available? (i.e. 5sp a night). I've turned the Emporium, Lazare's, The Spinning Giant, The Hungry Gar and The Rusty Bucket into pure nightspots, with no lodging really available for non-locals. I figure there's not a whole lot of visitors, and the two mentioned above essentially corner the market. It has had good results too, since that player is keenly motivated to find a quick way to make some cash.
I allowed PCs in my campaign to stay at the chapel of Heironeous for free provided they attend the morning sermon afterward. One of the PCs is a cleric in the chapel, so it makes sense he could get his friends a place to stay for free.