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I've been to egypt a couple of times and my favourite Red Sea resort is Dahab. Its about an hour from Sharm El Sheikh but alot smaller, very friendly and laid back. There is some great diving and its near to some sights like St. Catherines Monastery. Whilst in Dahab I took a night bus (about 7 hrs) to Cairo and spent a couple of days there. Buses go a few times a day from Dahab and Sharm. They are fairly comfy and air conditioned but you should pre book to guarantee a place. Like simms I used the lonely planet guide.
Hope this helps.