Backpacking the South Pacific - 2 months

Cheaper countries good for meeting young backpackers would be Fiji, Tonga and Samoa, roughly in that order.
Camping is not really an option in much of the region though as all land is privately owned and permission is required to camp on beaches. Established campgrounds are scarce - except in New Caledonia where they are numerious, cheap (sometimes free) and pleasant.
True hostels with dorms are most common in Fiji, elsewhere cheap accommodation means local-run guesthouses and basic beach bungalows.
Flights are pretty much the only way to get from one country to another, but with enough time and flexibility, boats are still an option within each country.
Food is mostly kind of unremarkable. The traditional food can be great, but not easy to get. Mostly lots of unhealthy imported foodstuff is consumed, with Indian food a good budget alternative in Fiji.

Thanks for the info. I have a few more specific questions now that I have the basic layout if you don't mind.

How much money would someone on modest budget spend daily?
How much in advance should we book flights - are they more expensive last minute?
Any recommendations on have-to-do's in Fiji, Tonga, or Samoa? We're probably only able to do 2 countries price wise!
Can you expand on the option of a boat? What kind of boat and how long could it possibly take?

It's hard to comment on budgets as these vary so much depending on how one travels.
Maybe $50 as the minimum per day for one person?
Could be less, but you wrote you had a better budget.

If choosing just 2 countries, make it Fiji and Tonga, both are friendlier and much more diverse than Samoa.

International flights should be booked in advance, domestic ones OK once there. Note that flights in Tonga can be unreliable.

For basic info on things to see and travel around by boat, check the relevant LP guidebooks - this stuff is all in there, in much more detail than could be summed up here!

The most recent edition of LP to Fiji is better than the previous edition (which was very biased towards mid-range budgets and perceptions). The Moon guide to Fiji has long been the best and most comprehensive.

Backpackers in Fiji are of two types. The first are the low-budget holiday-makers and they're more likely to go to the Yasawa resorts and/or the Viti Levu resorts, and/or be onthe FeeGee Experience tours.

The other type are the ones most likely on a RtW trip, or ending a work holiday in Australia. They're somewhat more exploratory and adventurous. More chance of finding them on Ovalau or Taveuni, or anywhere else. Once you get off the main holiday track, Fiji can be very much your own.

The one thing to watch out for regarding domestic flights is the weather conditions. In a 2 month period I booked 2 internal flights, both within a week of departure date (Aug-Sept) and there were no problems getting a seat. But delays of some hours or even a day can happen because of rain or mist. So, try not to plan around tight connections.

As Laszlo said, camping really isn''t an option, not freelance. Some resorts, esp. low end, allow it on their property. Camp grounds are pretty rare. I saw only one, at Matei on Taveuni. Depending on where you are you had better be sure you have good rain shelter. If/when it rains it can be heavy and a simple tent won't stand a chance. If you want cheap accom, dorms might be more comfortable weather-wise.

For prices, check some resort/region links as a guide, such as
http://www.fiji4less.com/south.html
http://levukatourism-com.webs.com

While accom is easy to predict it is trickier with food. If you go to an island resort then you will be more or less stuck with the resort's meal plan. Holiday/tourist strips in tourist centers are rare to non-existent anywhere on Fiji. If you are in any town larger than a settlement, then there'll be some restaurants to choose from, usually of the fast-food, stir fry, food court types of things. And there'll be (super) markets and bakeries to put together your own breakfasts and lunches.

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