I am currently researching places to stay early in the month (2008) and am having trouble finding something available. I would recommend finding something and reserve it, just to be sure you dont end up without a place to say. Most places will allow you to cancel your reservation up to 48 hours prior to your scheduled arrival.
I'd really, reeeeeaally recommend not going there during Oktoberfest proper. Way too busy - go in the spring instead. Better weather and the beer is always cold!
It'll be a zoo but you should go for it. If you can't find a place to stay you can always figure something else out at the last moment. Munich is such a fun, interesting and city, you won't regret it either way.
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