If you speak English, there will be no language problem, as most merchants and tour guides depend on English speaking tourists for their livelihood. Just learn to say "Dobra Dan" (doe-bra dawn) which means "good day". Yes, you can easily arrange the day trips once you arrive, just go down to the piers where you will be inundated with possibilities. No need for a car at all, the buses are easy and affordable.
A week is a LONG time to spend in Dubrovnik without taking some day trips out to other regions/islands. I took a day trip to Montenegro, and also one to Mostar, in Bosnia. (bit of a culture shock, but I was curious. Not really recommended)
Or, take an excursion boat to Cavtat, a medieval town and resort area on the southern edge of the Rat peninsula where you can swim, shop and sightsee. The boats leave from the old harbor pier numerous times (each direction) every day.
I stayed at the "Hotel R" which I found in Rick Steves' book. http://www.hotel-r.hr/ It is a family-owned hotel, very friendly and moderately priced, plus a hearty breakfast is included, complete with made-to-order omelets. Also, each room has satellite TV and free internet. It's right on the bus line, but also easily walkable. I normally walked to and from town (15 min.) unless it was late at night and I was tired. The owners speak excellent English and are happy to help you set up tours, some that I wouldn't have known about otherwise. The owner even drove to the airport and picked me up personally!

Hope this helps! Have fun!

p.s. Don't plan on doing laundry while you are there. Electricity is unbelievably expensive and it costs $25 to do one load.

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Mostar is highly recommended and there will be no culture shock. The bridge that Croatians bombed will leave you feeling breathless, the green river below is just beautiful, watching the men jump off the bridge is another experience. Electricity is not that expensive, the figure he gave you is preposterous.

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