This might not be much help, but my first ever visit to Portugal was a fortnight in Faro. It was however about 15 years ago, although I have been to Portugal about 10 times since.
I stayed in the Eva Hotel with a room overlooking the marina. From what I can remember, the restuarants were excellent, and the shopping pretty good too. As for places to visit, one of interest is the Chapel of Bones.
I was thinking of staying in Faro early next year to celebrate my 40th birthday, but found the hotels pretty expensive, so have opted for Tavira instead, but will visit Faro for the day.
I am sure someone will be able to give you a bit more uptodate info.

Thanks for that. Talking of expensive hotels, that was part of the reason I was keen to go. I looked on hotelconnect.co.uk and hotel prices start from around £56 for 3 nights for a double room. Maybe you ought to take a look...?

Anyone else got any comments to make about Faro please?

Emgin, I have stayed several times at Hotel Eva in Faro, the outside of the hotel is quite ugly but if you have a balcony overlooking the marina then you don't see this and the view is lovely. The area around the marina and cathedral is well worth visiting, my wife and I like Faro, perhaps because it has not yet sold it's soul to tourism. Some parts of Faro are quite shabby but it does have a certain charm. There are plenty of decent restaurants, I like Mesa Dos Mouros in the square near the cathedral, but there are plenty of good restaurants. I think it's a great place for a laid back short break. The bus station and railway station are also nearby if you don't want to hire a car but would like to go further afield, Olahao and Tavira are easy to get to by train but if you are staying only 3 days then you may not wish to venture further. There are plenty of websites that give more information, look at:
http://www.eastoffaro.com/
http://www.portugalvirtual.pt/_tourism/algarve/faro/index.html
http://www.ilha-deserta.com/ilhadeserta/uk/default.asp
If you have any particular questions I will do my best to answer them

Hi Emgin,

Faro is beautiful. Been there several times in the past 5 years. Shopping is very good and if you come across any bakeries look for the butter caramel hard coated balls which are to die for as are the custard tarts "natas". Order a "Galloe" too as it is like a delicious latte. Near the marina is the train station and if in your 3 days there you get your fill of Faro, I recommend visiting Olhao (old town charm with a cobble street as narrow as 2 feet-my parents home town), Albufeira (great night life), or Portimao/Praia da Rocha (spectacular beach).
Portugal is stunning....next time visit longer, in warmer weather and tour the entire region of Algarve. My website has lots of information on the towns and villages very close by, but you have to find me under private rentals section of this website. Enjoy Portugal Emgin!

Rose