Another vote for Lisbon here. If you do decide to go there then stay in a little place called Sintra. Just outside central Lisbon and absolutely dripping with History: castle on the hill, cobbled streets , horsedrawn carraiges still form the local transport, loads of little shops (some selling tat but you get them everywhere). It sits atop the city centre miles up a hill and they have a little train which takes you down to a very small beach with a cafe which serves delicious seafood. Taxi's to city centre take about 15mins. The Tivoli Sintra is the best hotel in the town and the room i stayed in had it's own blacony. The bar also had a great selection of port which i just had to try.