Sao Jao is the area where the strip is i think so there will be plenty to do. Im staying in Montechoro which is at the top of the strip furthest away from the beach. There is plenty to do in all parts of albufeira so you'll be reet! 
Yes Sao Joao is part of Albufeira it is the new bit of the town and like the previous person said it is where the strip is.The Resort is very busy during the summer months.
In addition to Arias de Sao Joao which is more or less from Avenida dos Descobrimentos,at the top of the Strip to the bottom there is also Forte Sao Joao which is between Oura beach and the Old Town.
some people call it the Montechoro strip too. If you want to go into Albufeira old town a Mini Train can take you for 3 euros. (unlimited travel for one day)If you walk it its about 2 kilometres 
Yea the train is the best option but it can get busy, taxis are cheap enough though if your wanting to get to the old town from the strip!
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