Praia Da Luz on the algarve is a very quiet lovely place with scenery to match.
With its many shops and restaurants, and lovely beach, as well as the fantastic looking church is a great place to stay if you like nice walks and places to eat /drink but without the hustle and bustle of too many people,
We stayed 5 minutes away from Luz in a place called Espiche which is a residential area on a newly built complex in an apartment. This was through a friend at work who rented it out to us.
The more busy Lagos Marina was approx 10 mins away by car or taxi should you require much more nightlife than Luz itself.
Have been back to Luz twice in the past 3 years 2007 and Sept 2009. We are going back to the Algarve in Sept this year 2010 but are staying in Old town Albufeira by the square, just to see another side to the Algarve. Will definately be returning to Luz sometime soon though.