Hi
We were in almost the same situation. We stayed in Lindos (got married in Lindos - will write about that more later on!) and part of the family stayed in Atrium Palace.
We had our reception at the Atrium as well.
It is a great hotel! Yes it is not walking distance from Lindos, But a taxi ride was just 10 Euro's. Most of the nights they came over to Lindos for a meal and a drink or two. Some nights they stayed in Kalathos. There is one restaurant near the Hotel (probably more.. but one that I know of) that is really really good! We spend some time at the hotel as well. Enjoying the Spa, pools etc.
We stayed in one of the Villa's of the Atrium on the night before and after the wedding. It was Super! Two bathrooms, jacuzzi, own swimming pool, FOC room Service, Complementary champagne, Free usage of the Spa etc.
We booked the villa once we were there to get a better price. And that worked! Probably because it was the very last week of the season (26th Oct) but we got the room with a mega discount.
All the women (including me) had their hair done by the hairdresser there on the morning of the wedding. Most of us had our nails done as well and my Make-Up looked fab!
I really can't fault them. The reception at night was so well organised as well.
Can write much more, but will leave it for now. Will write a wedding report later and place it in the 'wedding' thread.