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PV is an AWESOME town-- probably my favorite in Mexico!!! My wife and I rented a condo for a week there a couple of years ago, from her coworker's father. PV was originally an old fishing town, originally built in the late 1600s, IIRC. It has a neat mixture of old Spanish-colonial architecture along with the more recent buildings.
Banderas Bay is absolutely beautiful. Be sure to catch AT LEAST one sunset over the bay-- it is absolutely stunning.
The beaches there are not overly crowded for the most part, either. Apparently the south side of town has been a gay destination for a number of years, and you'll see a lot of very buff-looking guys in Speedos (I felt a little embarrased with my big MN-style beergut and fishbelly white complexion :)). The locals are all very friendly and most speak at least a little English. The prices are reasonable and not nearly as high as other tourist hotspots like Cancun. The cab fares are only 20 Pesos (US$2) to almost anywhere you want to go. There are plenty of great restaurants and clubs, too. I would recommend you try to avoid the places that serve the "gringos" and try to find some of the ones off the beaten path.
There was a seafood restaurant we went to there, up in the hills above town, where we had a HUGE seafood feast for about 700 pesos (US$70), including drinks. The place was on a bluff that overlooked the town and the bay. Frank Sinatra was playing in the background, and it was like a scene out of some film noire. VERY romantic and charming!
Also, if you want to get a good look at what PV looks like, go rent the movie "Night of the Iguana". It was set in and around PV and much of the scenery in it is unchanged. Also, check out www.puertovallarta.com for good tourist info.
After I make my first million, me and my wife plan on buying a condo there (decent ones start around US$75k!) and spending the winter there. It's really a great city.
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