The Banff townsite is small, and you can walk just about anywhere you want to go. Walking is quick, easy and allows for random adventures down to the river, through the forests, up the mountains. And all of these activities are within a 5 - 10 minute walking distance. Banff has an extensive public transit bus system (http://www.banff.ca/local...) that runs through town for $2 a ride $1 for kids and seniors. It connects up with all the area hotels and attractions. Taxi cabs are also available, which is handy if you are doing a grocery run.
Biking around town is popular too. There are several shops to rent bicycles if you are interested in either mountain biking, quick travel downtown or trail riding to the historical Hot Springs. Banff is filled with trails that take you through forested areas, along streams and waterfalls, and ultimately lead to incredible lake and mountain views.
