Yes, SandyClaws, I remember it as well as a 70's kid! The store you're thinking of was Virginia Dare Hardware, and was right next to Wink's market. (They were the closest thing we had to a Lowe's and Harris Teeter back then!) The location is actually Kitty Hawk, not Nags Head, but both are still standing. The old hardware store (which was run by Smitty and Elizabeth Smith) is now the Ocean Blvd Bistro and Martini Bar. Go for dinner sometime, I'm sure you'll recognize it. Not sure if the motel you remember is still nearby but you'll be in the right neighborhood.
Thank you so much! I found some pictures, and although the building itself doesn't really look familiar, the surrounding area sure does!