I echo the Clabaugh recommendation. Matter of fact, I think we stayed there because of Silverthreads post last year, so thank you. It's quite nice and the folks were really friendly and helpful.
There's tons to do in the area, but when we're there we spend most of our time in the Smokey National Park mostly hiking to the gorgeous waterfalls. There's several that don't require long hikes and maps/guides can be picked up at the Park Visitors Center. Tubing and white water rafting are popular activities in the summer. I also think there might be some rafting that's calmer. Btw, the park has auto touring guides too you don't like to hike.
Have a great trip .. I can't wait till we get there this fall!!
Oh, I should add that another favorite of ours there is the Krispy Kreme store in PF!!