We have stayed at Banyon Bay and we stayed at Blue Tang in January 04. We will be back at the Blue Tang on January 29 thru February 13th 05. We prefer the Blue Tang because it is so close to all the bars and restaurants that we enjoy so much. Banyon Bay is just too far for us, Banana Beach is very close to Banyon Bay(if you are wondering why I am talking about Banyon Bay and you probably are). From the Blue Tang we can walk almost everywhere we want to go. And we can manage to walk home from wherever we've been at night. The pool at the Blue Tang is small but very nice and rarely crowded. The folks at Blue Tang are wonderful, but most of the folks in San Pedro are great.
It really just depends on what you want. If you want to be where the action is, stay at the Blue Tang. If you want to be away from town, stay at Banana Beach. Banana Beach is about 2 miles from town.
No matter which one you choose, you will have a great time in San Pedro!!! It will steal your heart.