I did it early this year - stop overs were Chepstow, Monmouth,
Pandy, Hay on Wye, Kington, Knighton, Little Brompton, Llanymynech, Llangollen, Clywd Gate, Bodfari, Prestatyn (although I didn't stop at Prestatyn - Mr Lizard is right that Prestatyn is not the best of places, but then neither is Chepstow - and if all you are doing is getting on a train - its no big deal. The walk along the cliffs above Prestatyn is quite nice - its only horrible when you get there!)
My Little Brompton to Llanymynech stretch was quite long - as was the next day to Llangollen. Had to get a taxi to get any food at Little Brompton.
I found the ODP a great walk - my second favourite after the Pennine Way - preferred it to the C2C. But particularly in the middle there is a lot of ups and downs - Mr Offa didn't take into account going round hills - he just went straight over them.
With regards baggage transfer - most B&Bs will transfer your bags for you, but it costs about £10 to £15. If you go to the offas dyke association website -
www.offasdyke.demon.co.uk - their accommodation listings tell you whether they do baggage transfer. I did come across some organisations who do the whole route but it was very expensive - and most of the B&Bs were very used to being asked to shift bags.