On our grand circle tour through Texas last year this was one of the biggest suprises.
It's an amazing small town and very different in many respects from the surrounding communities. While still Texas hill country, Fredericksburg has managed to keep it's German immigrant heritage visible and takes great pride in it's history.
There are several museums nearby, including the Admiral Nimitz Museum, dedicated to the father of our nuclear fleet, and even a small theater community. There are six winerys/vinyards, 4 in fredericksburg and 2 in nearby Stonewall. Plenty of B&B's are there, lot's of small shops, and places to eat. This is really a nice spot for a weekend break, or as a short stopover on your way through the area.
Best souviner? A bottle of wine. Texas has a great grape growing industry and it's largely unknown.
${QuickSuggestions} Try a two night exploration of Fredericksburg. The B&Bs are plentiful and it's easy to get around on foot. Spend at least a day getting to know the town and then reserve a day for exploring the area by car.
The best time to go is in the spring before it gets too warm. Texans will not mind any but the most extreme temps, but for northerners I would recomend March and April.${BestWay} Cars are essential, but once in town you can park and walk. Watch the traffic on Main street which can be heavy and slightly reckless as people try and get through town or in and out of businesses.