Albufeira would probably suit you.There are two distinct parts to the town- the Old town which has lots of shops,bars and restaurants, and the Strip, which is frequented by the younger element generally.If you find one too quiet you can move to the other and vice versa if you find one too lively for you. Either way,you're bound to find something to suit you.

Agree with Sagres Albufeira sounds ideal for you.

third the recomendation.Just got back.Taxis are well cheap so travelling between strip and old town is not a problem.
We actually preffered strip as found lod town square very pricy in bars when compared to strip.
My two teenage lads want to go again,which is no mean feat

thanks everyone for your recommendation