Ubatuba is the best beach city in São Paulo state and still not crowded with tourists. There I could find more than lots of amazing beaches and waterfalls.
São Paulo If you can arrange a walking tour, take it. If not, try to visit the Edificio Banespa. It is the tallest building in Sao Paulo and will give you an excellent view of the city.
Ubatuba is a paradise -- diving, snorkeling, pristine beaches, good restaurants, and hotels! It's close to Rio and Sao Paulo. You must visit it!
This place is amazing -- one of the best places that I have been so far. I was going from Sao Paulo to Rio and decided to stop for one night in Ubatuba, and I stayed six. I recommend it to everybody who loves nature and surf.
Búzios Buzios is a small resort town with a bunch of mediocre hotels, restaurants, and it's full of old people and mothers pushing baby buggies. This town is overhyped and needs a facelift.
[I deleted the long story about his taxi being searched etc because I didn't know how relevant it was for a city comment and it was also hard to understand, but if it should be put back in let me know.]
I've been in Saquarema last February and what a great surprise Ii had with the very nice city and amazing beaches. The average prices are half than Rio prices. I recommend to visit Saquarema -- it's really nice and sunny!
If you want to enjoy a safe and beautiful place with all the basic commodities, you should visit Ubatuba.