Hi MadridMan - nice to see you on FT! (I post on MM as MAD for Madrid) It is a great site and quite helpful.
I live in Madrid (transfer from NYC) and love it! MAD is a great place to use as a base for day trips. You can take the bus/train to Segovia, El Escorial, Toledo, Sevilla (the AVE is great), etc.
Madrid also has a TON of things to do: Prado, Thyssen and Reina Sofia museums, tapas crawls - try the area down behind the Plaza Mayor (calle cava baja, etc.), Royal Palace, Parque de Buen Retiro (although there is currently a lot of restoration and construction going on in it), clubs, etc.
Feel free to email me for more details or ideas.
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I Love New York -- Viva Espaņa