We (group of 8) stayed at the Algarve coast, in a luxury villa with a pool near the town of Lagoa. The golfing "resort" area is Quinta Do Lago. Easy to remember - "Five Lagers".
The weather in July was warm to hot - around 32-37 celsius, and dry. The water was very cold, and the beaches were indifferent. I looked at diving there (I'm PADI OW), but not worth the time and expense.
To be honest, we were pretty unimpressed by the area. Faro, the main hub of the Algarve, is dirty, hot and difficult to get around. Dining out is expensive, although if you self cater (as we did in a very nice villa) prices are very reasonable.
If you've dived in decent spots, been to decent beaches, done some historical sites, then perhaps give the Algarve a miss. Much of the area was destroyed in a massive earthquake in 1755, no real history to see, apart from maybe Silves - which was a good day out.
However, if you're into resort golf, warm, dry weather, then the Algarve may be for you.
(Edited for speeling)
[This message has been edited by willyroo (edited 04-27-2003).]