I almost would like to shoot myself in the skull reading this question. Why?
ADMITTEDLY VERY SELFISHLY
...Because I realize that a) I am not going to be a part of this Balloon Fiesta period, b) I d**n well could (and should) have been, c) This will be my 2nd year away from ABQ during the Fiesta, and d) the Fiesta rules.
So Yukon, from a fellow who went through 4 Fiestas as a complete outsider, here is my very, very biased and personal suggestion:
A) Go to a Balloon Glow / Glo-de-o (or however the acronym goes) - ideally on the first Friday night of the Fiesta. Get there at 4pm or so. Enjoy dinner there. Enjoy the warm sun as it sets and the cool high desert evening air as it starts to waft over, including watching the glorious ABQ sunset. The buzz and vibe of the grounds, with the beautiful glowing balloons (pre-fireworks) is a very enjoyable evening.
B) Hit the Balloon Fiesta on a Saturday morning. Get there if by transit not later than probably 4am and if by car not later than 5am.
You'll get there in the chill of the early AM high desert black morning air. You can bustle into the various vendor tents, trying to wake up (only being aided by the chill of the morning's crisp desert air).
After some tent-viewing, watch the very pretty "Morning Patrol" first lit up balloon wafting high in the black sky.
Then, after the "Morning Patrol" balloon, quickly hustle for your 1. BREAKFAST BURRITO (complete with many, many and much huevos, queso, papas, carne [likely bacon] and tons and tons of chile) and 2. HOT CHOCOLATE (or pinon coffee).
Grab the afforementioned culinary treats and rush back (satisfying your taste and smell buds) to watch dawn break over glorious ABQ. See the blaze of the early morning gigantic sun bake over the Sandias Mountains in gold glory to the East.
Shortly thereafter, stand in glee and amazement at the legions of balloons that - by flock - start to fill up and let it rip into the early AM ABQ air. You will see hundreds of these go up...and all will be incredibly fun and boggling to watch go up - especially in those numbers. Cameras will be clicking like mad (if you don't have one, you'll be scrambling to buy a disposable one, wishing you had brought it). The buzz of the crowd will be high. The roar of the play-by-play announcer guy will be broadcasting messages in a comforting way over the crowd.
All the while, you'll have gotten there in cool 45 degree to 60 degree early morning high desert air, and by the time you leave, you'll be under warm and sunny 70 to 80 degree high desert warm conditions, shedding your warm coat for short sleeves; couple this quick warm up with the burrito/drink and hoopla accompanying, and you'll be ready for a nap in the afternoon shade outside.
Yukon, no matter what you do, if you experience Ballon Fiesta in some manner, you'll be so, so, so far better off than the rest of us that aren't in ABQ, it is unreal. Remember us when you are in paradise!