We stayed in September 2006 for our one year anniversary, the hotel itself is very nice although a bit too imposing for our taste. We found the staff at the hotel to be extremely unhelpful and borderline wretched!!
There are no fridges or minibars in the rooms, when we requested a bucket of ice to cool our drinks we were told that the cost for this would be 12 euros - for cubed water! We were then told we could hire a fridge for 3.50 euros per day which we did, also on top of that is the 3 euros per day for the safe deposit box key.
The pool area is far too small and very cramped, getting a decent sun lounger is like running a gauntlet! Am sure people were setting their alarms for 5.00am to get the best beds - although we never stooped to this level - it was tempting though.
The food was awful, breakfast was the worst I have ever had, stale bread, terrible cooked foods and the feeling of being back in the school dinner queue (although lumpy school gravy would have been a bonus in this place).
Also, cleanliness is not next to godliness in this place, the rooms are very nice and spacious but the cleaners dont seem to do much apart from make the beds.
Beware if you looking for a nice relaxing break with your loved one, this may not be the place, seems to be invaded by large groups of golf loving men who find "bombing" the pool a great source of amusement.
Vilamoura itself is lovely and very picturesque, lots of nice places to eat and generally very nice.