I am considering a visit to the Laponian area in August. Hotels in the area seem scarce and not worth the money. Does anyone know of a nice B&B in this regio (a bit north of Jokkmok)?

We had similar thoughts on hotel rates up there. Pretty expensive and not really that impressive. We stayed at Skogshotel just outside Gallivare. It was pleasant and friendly though pretty basic. It has a sort of holiday camp grounds around it. Whilst it wasn't the most impressive I would probably stay there again if I was ever up in the area. There wasn't a huge amount to do in Gallivare though, our eating options were either the Irish/American chain sports bar or starving.

If you want to get into the most interesting parts up there be prepared to spend a fair bit in terms of time and money. However we rather enjoyed our tip to the easier accessed Muddas NP. The museum in Jokkmokk is a good place to start.

Also be prepared for clouds of flying insects.

I can't get the link to work but this is the hotel:
http://www.skogshotell.se

Did you also drive up to Ritsem and the lake?

Nope we didn't get upto Ritsem, we were very tight on time, but that seems like a good way to go to get more of the scenery. So perhaps my statement about costs doesn't stack up as well :)

I really enjoyed it up there, some of the nicest roads I've ever driven on as well.
Are you also looking at visiting Gammelstad or any of the Struve points?

Yes. I'll fly to Lulea on Thursday (change flights in Stockholm), and then drive to Gallivare.
Then spend one day driving up and down the road to Ritsem, along which also lies a Saami visitor center/settlement.
Next day I plan to do what you did: visit part of Muddus NP and Arvidsjaur.
And then on the final morning visit Gammelstad.

I'll try this B&B: http://www.bbgellivare.se/en/ in Gallivare (last night will be in Lulea)

That sounds like a good trip. That bed and breakfast in Gallivare looks pretty good for the price, it was fully booked when we were there last year. Also you are a short walk to O'Leary's which Mrs Meltwaterfalls and myself use as a shorthand for when there is a dearth of eating options.

I quite liked Lulea, it isn't stunning, but a very pleasant place to be. There was a great deli on the waterfront, rather pricey but great food.

Arvidsjaur was pretty work-a-day, but again we had a lovely lunch there and the people were very friendly. The Lappstaden itself is pretty small. It was handy for us to call into as it was on our drive up from Skelleftea (also has a nice wooden Churchtown) though I am not sure if it will reward a long drive as much, but could make a more interesting loop back to Lulea.