The last 3 years we've stayed at the Cerro Mar with Thomson. Not the cheapest, but only about 5/10 minutes into the Old Town square and 15 from the Beach. BUT be warned it is at the vary back of the Town at the top of the hill. We learned our lesson and always took a taxi back (about 4 Euros) They are very nice apartments though.

If you absolutely want Albufeira then Aqua Pedra dos Bicos & Quinta Pedra dos Bicos are great - same place but Aqua is hotel & Quinta is self catering apartments. They are situated 5 minutes walk from the beach - down wooden steps & are in the Santa Eulalia area of town - near bars & restaurants, but 20 minute walk to Old Town & 5 mins from the Strip.

I'd also recommend Alfagar 1 or 2, but they are further out from Albufeira, but a taxi to old town is about €7.

Outside Albufeira, Adriana is a very popular hotel, out in the sticks but right near the beach & is a very popular hotel.

Thanks for all the information,think i might have something sorted