I visited Murudeshwara with my family on a Saturday evening in April 2007.
The first impression for any traveler to this place would definitely be the huge, majestic statue of Lord Shiva on top of the hill. The surroundings are also built up with smaller statues that reflect the epics period and give a very nice feeling. The next striking thing is the restaurant that extends into the ocean and then the third one is the RNS residency that faces the beach and this restaurant. The snacks and the coffee we had in the restaurant in the cool breeze from the ocean were refreshing and definitely something you should not miss.
The beach is shallow for a good distance into the sea and seems safe enough for those who want to play around in the sea waters(please dont take my word for it though!). There were a couple of water sports as well and the pricing was pretty reasonable compared to other tourist places(I am not sure if they are available all days or only on certain days). The beach is well lit. The thought that has gone to make the place what it is, is really amazing.
There is still a lot of construction going on(a very tall gopura, Shiva statue being enhance etc) and I think it would take about 6 months to complete what they have started.
We were on our way to Gokarana and so had to leave in about 2 hours(initial plan was to stay there for only 45 minutes!). But I’m pretty sure I’ll revisit the place for an overnight stay.
My ideal trip to Murudeshwara: Check in before noon at RNS Residency with a room facing the beach, take rest till 3.30 PM, get out to the Shiva abode the temple etc, have a coffee in the beach restaurant in the sea breeze, get back to the hotel, change over to shorts and head to the beach. Finish off the water sports and then get into the sea till you are tired. Get back to restaurant for a dinner. Wake up leisurely next day and check out before noon!
Note: there is also a guest house and other buildings that face the beach or the ocean. these could be cheaper options compared to RNS Residency which is rated 3 star. Surf the web for contact numbers for these hotels.