My fiancé and I stayed at the Palladium for a long weekend in August 2008 as we were in Mykonos for a friend's wedding. The staff were very accommodating and friendly and we cannot fault the hotel in any way. The assistant manager even went so far as to show us a number of available rooms on different floors so that we could choose which one we preferred. They went out of their way to do small things that they were under no obligation to do (such as helping us out when our scooter was not working!)
The only blemish to our stay was my last minute manicure and pedicure. Unfortunately for the 80 euros I paid, I was very disappointed. They use a mobile beauty therapist (so this is no direct reflection on the hotel) who was simply not very good. She took over two hours and I was forced to remove the varnish on my finger nails immediately afterwards as the standard was so poor. I relayed this the next day to the hotel desk who were very sympathetic but that was the extent of any recourse. I would have hoped a refund or some other similar gesture would have been offered.
Other than this - clean hotel, friendly and courteous staff and we would return.