First think about where you want to stay... we stay in Duck, a small town on the Northern half with good waves but not much else. Kitty Hawk and Nag's Head to the south are larger. Corolla is the farthest north and has a grocery store (and BrewThru!)

We rent through these guys: (http://www.resortrealty.com/index.htm) but there are plenty of options. Most rentals are pet-friendly but charge a ~$150 pet fee.

But the best part? The beaches in Duck are pet friendly and allow the dogs off-leash, all the time!