I suggest the Callaway Gardens' Hot Air Balloon Festival. It takes place Sept 3-5, 2004. It should give people enough time to plan for a long weekend (Fri-Sun) and we should still be able to schedule lodging at this time. Callaway is out away from any metropolitan area but there are some lovely settings all around.
I am in VA, but spend a lot of time in NC. I would definitely be interested in this event. Never been to a balloon festival - looks like a perfect "photo op" event.