Nara City, Kyoto
By basing in Kyoto, there are other areas in the Kansai region that you can visit fairly easily as the transportation system is efficient enough to bring you anywhere in Kansai in the fatest time.
Nara is a historical site and definitely worth visiting. It is home for many World Heritage Sites too. Being an ancient capital of Japan, Nara has lotsa to offer and some of the places you must go are as follows :
-Nara Park (To see the deer)
-Toadaiji Temple (Well-known Temple with Huge Buddha)
-Kofukuji Temple (5-storey Pagoda)
-Kasuga Taisha Shrine (Place of stone lanterns)
-Shoso-in Hall (A treasure house of religious items used in Todaiji Temple and ancient items.)
-Sasayaki no Komichi lane
-Yagyu Kaido (Takisaka no Michi)
-Nara National Museum
-Nara Prefectural Museum of Art
Bold : Places I visited.
NOTE : Please refer to my Nara Page for more tips. Alternatively, check out A2002's (Lina) comprehensive Nara Page