I got this info from Malousch Kohler (10/2000) 

Pai is a small little town, no mass tourism yet, and I hope that the long curved road will keep it that away. It's 4 hours by bus from Chiang Mai. Pai has a big variety of guesthouses starting with simple bamboo-huts at 50 Baht pp, but has also beautiful resorts in the direct surrounding, up to 700 Baht for a hut. The area has a lot to offer, this can be discovered by mountainbike or motorbike, or by foot. There are several good trekkingcompanies here, a lot offer that same 3 day-package that you get in Chiang Mai. But from here you don't have to sit in the car for so long on the first and last day.   

Most trekking companies do 3 days walkingtrek only, as there have been some unpleasant experiences with elephants from one of the tribal villages further up in the jungle. Some companies do not care, though, as long as they make money, so do ask around for recommendations. A great company for 3 days walking is Rung's Trekking, opposite the evening-market. Rung is a great guide, and so is her companion. Here you can be sure that your guide is not taking off in the tribal village at night, to follow his own urge for drugs. The same goes for Pat, the guide from Duang guesthouse. He also sometimes includes rafting in his trips.   

But the better recommendation for rafting and elephant rides is Thom' s Elephant Camp. The owner, Thom, is a really friendly woman, who grew up with her elephants, and does trips with them through river or jungle. You can play with them in the river and ride them bare-back. This has been quite spectacular, showering with these enormous friendly elephants, diving under, and feeling how they move. Much better then these trips in big groups, when I was there, never more then 2 elephants went at the same time.