Re: My in-laws are visiting NS in mid August...
1) It can be a very enjoyable, scenic drive, but it can also be pretty tiring. Save the driving for when they are in Nova Scotia or they won't have any energy left once they get there. (in other words, Fly!) I've made the drive from Ontario many times, and it takes the better part of two days. 2) They'll have no problems finding car rental places (all the big Rental agencies operate out of the airport - like Avis, Thrifty, Budget, etc.) An Indiana license is accepted without problem. 3) Your best bet is to search out Nova Scotia destinations in and around Halifax using VT. Nova Scotia is a little under-represented here, but there are still many good tips. Also check out Lunenburg, Peggy's Cove, Cape Breton, the Annapolis Valley, and Fortress Louisburg, just to name a few. They'll enjoy themselves!
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