Just back from the Pegasos Palace yesterday and can honestly say that all those who are about to go are in for a great time and I'm very jealous!
The hotel and its grounds are kept spotlessly clean, the room was lovely, the food was great (and plentiful!) and the evening entertainment was fantastic. Who could ask for more??!!
I will echo the answers to the last few questions posted (if only to emphasise how great this holiday is):
Trousers - A lot of guys wore three quarter length trousers in the evening and it wasn't a problem although it could be quite chilly some evenings and the mossies do like to have a nibble at your ankles if you haven't applied your Sin Kov repellent. If you're going soon, the ladies might certainly like to take a light jacket or cardigan for the evening because those who were sober enough to care were cold sometimes.
Drinks - The drinks were VERY free-flowing. They certainly aren't watering down the spirits and I would agree about the flavoured liqueurs - they are great. From memory you could have Orange, Melon (lovely!), Peach, Mint (Hmm!) or what they called Amaretto (I think) which would of course be Almonds. Tried the first 3 and loved them all - particularly as I added a measure of Vodka to mine to 'beef it up'. The mixers were Coke, Fanta and Sprite. They were not as strong flavoured as if you would buy in bottles or cans but they certainly did the job.
Money - We hardly spent anything extra other than a few sweets for the evenings and the £2 we paid for the kids clubs in the evening when they had a special event like the chocolate party or sweetie bingo which was every other night when we were there. As we were only there for a week, we didn't do any trips and our daughter wasn't interested in the pool, bowling, internet, the ice-creams you had to pay for or the popcorn/candyfloss.
Kids clubs - 10am, midday, 2.30pm, 4.30pm (all for 1.5hours) and then 9-11pm. Our daughter is 6 and loved everything and the staff were great. You didn't need to pre-book when we were there but I guess this may change when it gets busier. At the moment, you just turn up. Security for the kids was great too - you have a card with the names and signatures of anyone who might be collecting your child and they only fetch your child once they check that signature with the one you give when you come to collect them. Great for 'peace of mind'.
Currency Exchange - This can easily be done at reception and the reception staff are great. I think the exchange rate was around 2.55 when we were there and that was better than we got at our local Holiday Hypermarket.
Ice-Cream - Vanilla, Choc, Strawberry, Lemon and Pistachio. All Walls and all fantastic. No cheap ice-cream here! Free cones available from the beach bar until 5pm, but freely available at lunch and dinner.
Mozzies - My wife and I got a couple of small bites but our daughter got none at all. We only noticed ours when we were applying sun cream the next day, so they weren't bad and certainly won't spoil your holiday. Not sure how much this may change as it gets hotter, but it was flippin hot when we were there last week.
Anyway, that's it for now. Please feel free to ask questions and have a great holiday.