The weather should be just fine. We have been in San Pedro for Christmas several times (arrive this year on the 22nd) and it is generally in the mid to low 80's, nice breeze, and 70ish at night. Rain is more likely than say in January or February, but all in all it is pretty dry towards the end of the month.
The Playador has a beautiful location and has several different types of accomodations that run the gamut. The newer ones towards the back are pretty nice (so we've heard) but are perilously close to the Barefoot Iguana Nightclub. You'll be a very short crawl south to Coconuts Beach Bar, and a short stroll north into town. Duck up the road to the Hideaway for breakfast Belikins, and then take the beach south to walk it off, and help in the dolphin spotting patrols.
[This message has been edited by CHOOCHOO (edited 12-14-2000).]