After a wonderful trip solo to Phuket at Trisara (see my Trip Report in the signature line), I am now sending my in-laws there for a vacation.

The issue is that they are not really into chilling on the beach/pool and like shopping and walking around town etc.

Accordingly, although I would love for them to go to Trisara, I am wondering if you can recommend an excellent resort closer to town, or closer to Patong. As a "Plan B", I will have them stay at the HI in Patong for a couple nights to get that out of their system, and then go to Trisara or somewhere else, but ideally I can set them up for 4 nights in a single resort....Your ideas and suggestions would be welcome. I guess their interest in shopping and walking etc., rules out Krabi and Koh Samui as well, right?

Fabulous design of the highest quality, really comfortable beds, private pools, service that reads your mind, delicious food, wines, cocktails, breathtaking views, small size, so fewer people and more personal service.... etc etc etc

My wife and I like Khao Lak better than Phuket. We have not stayed at the Meridein, but we love the Sarojin, It is wonderful and a Virtuoso Resort.

I don't like Khao Lak but I understand how you might prefer it to Phuket as Phuket is so built up now. It's easy to go to either of Phukets best resorts and just stay there!
Perhaps I should give Khao Lak a chance,but where would I stay? How is service and food at The Sarojin now?

The food at the Sarojin was excellent. We also had several meals in the town--we especially liked the small casual Italian restaurant.An Italian Chef had married a Thai woman.
We flew into Phuket--the Sarojin will pick you up--its about an hour ride to Khao Lak. We rented a car there for 2 days of our week stay and drove arround.
We were there 2 years ago---so I would check the latest reviews on tripadvisor.com
The Aman resort in Phuket is super but I think you can stay much longer with very little loss of quality elswhere because of its price

Rayavadee is not only unique/excellent - there were also plenty of beach shacks which had authentic thai food for less than what a Taco Bell taco costs these days. I feel like going back to Krabi, JUST for the street food outside of Rayavadee...!

I have reached my wits end trying to select a resort for my in-laws in Phuket. I must have checked out 100 resorts so far on tripadvisor and websites, and each one failed to meet the criteria; either too far, too expensive, or too cheap.

The simple criteria are as follows:

1. Within 20 minutes of good shopping, restaurants, and entertainment;

2. Up to $700 per night in high season (early January 2012);

3. Appropriate for sophisticated 55 year-olds; and

4. 5-star luxury.

I would have loved to have them go to Trisara which is my favorite, but it is too far for them from shopping and restauarants (that is the kind of vacation they want), and it is a bit too expensive as well. is there something apprpriate, closer to Patong (I know!!!), for under $700 per night in high season?

I suspect that the greatest problem is that Phuket is not the right destination for your in-laws, given their criteria for shopping and restaurants. Generally, people go to deluxe properties to avoid all the tacky Phuket shops. If they want shopping and restaurants, then Bangkok would be better suited to their needs.

Agree! Better go for BKK.

Am at Amanpuri now - just relaxing ( with my parents ). It will be too $ here as already above OP's budget. If need be, there's some shopping down slope or a drive to 'town'.

Many thanks for your comments. A property was recommended to me that appears to fit the bill: Paresa


Any comments on it from those that have stayed there would be appreciated.

You're welcome.
FYI, you may want to look here too. The property manager at Andara who moved over from Trisara, was also one of Amanpuri pioneer team
However, I have not checked it out yet - personally.

Just came back from a 4-nights stay at Four Seasons Resort Koh Samui facing the worst and most devastating rainfalls this island has seen in a long time. This experience showed that true luxury goes far beyond as to what we usually associate with it like accomodation, service, food etc.
I must really compliment the management on how they dealt with the whole situation. While the island was out of electricity and fresh water supply due to broken waterpipes the hotel had its own water reserves, its own generators for power supply and managed to keep food supplies so that no shortages could be noticed.
Of course they couldn't do anything about the weather condition but they scheduled some extra indoor activities like spa teasers and cooking classes.
But the service supplied didn't stop there. When we were leaving the island Koh Samui Airport was a complete chaos with hundreds of tourists jamming the departure hall basically from wall to wall.
Hotel representatives did all the checking in process for us while we were waiting in the restaurant and then whisked us through security.
Last not least, in a letter given to us upon checkout the management apologized for any inconveniences and discomfort that might have fallen over us and invited us for a 2-nights complimentary stay in one of their villas.
Thank you!

Thanks for this feedback. Very good to know since I am supposed to go there in two months from now. However, it is not really clear to me how much damage all this rain has done to the island. I wonder if everything will be back to normal by then.

if you mean residences, wow. and interesting. rates run $3K > $6K.

Great service from FS Koh Samui. ^ Hope you had a nice time in spite of the weather.