My wife and kids (I still call them kids but they're late teen and early 20's) just returned from a great 8 days on AC. We stayed at The Palms. In my opinion, The Palms is perfect because it's in town without being "in" town, if you know what I mean. No cart is needed and even tho it's relatively close to town it was very peaceful and quiet. We had a nicely appointed 2 bdrm unit on the 3rd floor that is perfect for families. We dove almost every day with Renee and Tony at Amigos del Mar and they were also fun and professional. Amigos del Mar gave us a very good package deal because of the number of dives we did. We found a couple of FANTASTIC restaurants that were off the beaten path as well: 1) Casa Picasso, south of town on the lagoon side. Wonderful food (mainly pastas, we were there for Paella night) presented beautifully in a martini bar setting with cool music. 2) Alibaba's Mediteranean Restaurant in town. On Pescador (I think) and back off the street, not fancy but fantastic rostisserrie chicken, stuffed grape leaves, fatush salad, and other Lebanese/Greek dishes. Run by a very nice guy from Jordan who prepared everything fresh. We saved our last night for the highly recommended Capricorn and, while the atmosphere is lovely, we were a little disappointed in the food and service for the price, not to mention $40.00US to get there for the four of us. Capricorn was definitely no better than Blue Water Grill, which we also enjoyed. We had GREAT bacon wrapped lobster tails at Fido's one night, as well. We were, however, disappointed at the Jade Garden. This was our family's second trip to San Pedro and we love the place! We had NO problem with people trying to sell us anything illegal or any vendors in general. We have dived and traveled extensively throughout the Caribbean, especially the western Caribe, and have found the combination of things to do, quality of accomodations and dining and overall ambience on AC hard to beat. I love the way "main street" is the beach and the fact that my kids can go anywhere in town and feel safe. I just wish we could have stayed a little longer and enjoyed the Costa Maya Festival!! One thing that was obvious to me was how slow it was the week we were there. I don't think any restaurant we were in was ever more than half full; Amigos del Mar only had one Turneffe Island trip the whole time we were there. I know it's the low season, but we were there 4 years ago at the same time and it seemed much busier. Not that we minded because it gave us more of the place to ourselves, but still I thought it odd. Anyway, we love San Pedro and look forward to a reurn, hopefully before 4 more years go by!