Laura, it's just too exiting isn't it!I can assure you London is really crowded, so I'm sure you'll enjoy visiting other places as well.
When you arrive, be sure to get a train, bus and tube plan.
You could take a train to Oxford from Paddington (there's also the Oxford Express (bus), which is considerably cheaper than the train. It stops about 4 places going out of London, at Victoria too). Oxford is a very nice city, and there are little quaint towns around there you would love! Most towns on the Thames are beautiful, especially Henley! You could also hire a boat and simply go along the Thames and stop where ever you want.
One cheap way of doing it, is to stay in a Bed & Breakfast. Get a list of those and also, get Time Out! It tells you what's going on for the week.
Here's a link to Time Out and Fodor's, where you can read what other travellers say about the places.
http://www.timeout.com/london/
Scroll down in the left side of this and see what others say:
http://www.fodors.com/forums/threadselect.jsp?fid=2
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