Yep. I've done that trip several times on the motorcycle. Telluride is a great place to stop, eat, and spend some time.
I've also taken the truck over the mountain (Black Bear Pass) from Ouray into Telluride. Spent the day, and then taken Imogene pass back to Ouray. I stay at the Box Canyon Lodge (I'd recommend that place to anybody). That is always a great July trip.
You can see the tight switchbacks on Black Bear Pass crisscrossing the mountain in the center of this pic. That road is so narrow that my passengers side tires are literally hanging over the edge of the trail. Scary.