Hi Tony.
Echoing Eileen, Annas Studios are perfect. We're staying there in July, and hopefully all of September. (Another story we might one day be able to tell you all about September.)
She is situated well up the hill, after "the cake shop," but ideally situated for San Stef and Arillas itself. We've stayed even further up and always call in for a beer or three on our way "down the hill" (that's us, it's all downhill....)
Seriously though, mid August is the most expensive you can get wherever you go. I've been a teacher for 20 years, and this is my last one thank heaven. We can never go in the cheaper times and tour operators double the prices in half term, let alone summer holidays.
What we do is keep bashing away at the net, teletext, travel agents etc till we get a price we can live with. Packages are fixed but out of season can become stupidly low priced - last October our week on Thomson at the Kaloudis was less than the cheapest flight. Not likely in August though.
Wish you luck. Keep visiting the websites, phoning the numbers on television etc. You might just crack it.
Read the posts on Dimitris wonderful thread "How did you find Arillas." It was just like that we ever found what is now our obsessions and favourite place in the world. A last minute accident. The chepie ha ha
Good luck
Phil