Luz is a small village with not a lot of facilities. There are pubs and restaurants but on a rainy day I stay in. I would suggest that you browse the following website to see what is attractive to you.
http://www.lagos-luz-sagres.com/

Must admitt Luz and Lagos are not brilliant when it pours with rain when we were there a couple of years back and had a really bad day weather wise we took ourselves off to Algarve Shopping for the day, but am not sure if that is an option for you without a car, plus you need to like mooching around a mini Lakeside/Bluewater which I appreciate isn't everybodys cup of tea on holiday. We enjoyed it but then it was only one day out of 14 and they had lots of sales on in Mango and Zara and various other shops, plus there are places to get your lunch there.

Just wondering if there might be wine tasting going on somewhere, that is an indoor activity that would pass a few hours if it rained but you would probably need to go on an organised trip.

I've just returned on13th October from Alvor, ( but usually stay with my Sister-in-law in Praia da luz).
All I can say is, GOOD LUCK!!!
It pee'd down for 3 whole days when we were there, and there was nothing to do, especially with a 10 year old to occupy. I can honestly say it's the first time I've ever wanted to come home early.

The forecast looks really good so we may be lucky! Fingers crossed!

To be honest, most of the places I go to on holiday are not too good when it rains We've had our fair share of rain on hols and affectionately call ourselves the storm trouper generals

I have just been speaking to a friend in PDL and he tells me that the weather is lovely

It only rains when I turn up. (Just ask my Sister-in-law)!.
Anyone planning a visit in the near future will be fine. I brought all the wet stuff back home with me,
and I'm not planning another trip to Portugal till August next year, so beware if you're planning your next year's hol's to Portugal late August 2011. I'll be there, and it WILL rain.

Aww pandy its such a shame when it rains in places that are really only suitable for good weather activites - there is only so much time you can spend in bars and restaurants Must be really difficult with a 10 year old.

The time we went and ended up at Algarve shopping was in July though - still as I said one day out of 14 is not too bad. I'm sure it should be OK in August though.