Anyone know where this place is?

I think it is Tenby, South Wales. See the articles about Tenby here and here, which both have similar photos.

Do I get a prize for this :-)?

Thank you for that! It very much looks like a place I want to visit. In return, your prize is a great feeling of helping out a fellow traveler!

We don't talk about it -- it might get written up in a guidebook.

I've been there. It's a lovely town with lots of photo opportunities.

Ed, I can see why you don't talk about it. It is now on my list for my next visit.

Yep, definitely Tenby in SW Wales (Pembrokeshire).http://www.visitwales.com
http://www.tenbyvisitorguide.co.uk
http://pembroke-castle.co.uk

I found fab beaches about a 30 minute drive west of Tenby - especially Barafundle Bay. If driving across south Wales to Tenby, it is well worth 'doing' the Brecon Beacons National Park during a 1 or 2 night stopover. Going in the other direction, you could consider a stop over in the Cardiff area. The railway crossing south Wales to Pembrokeshire goes through Cardiff but not the Brecon Beacons.

Any more queries should be under RS 'Wales'.
http://www.visitwales.com/explore/national-parks/pembrokeshire-coast
http://www.breconbeacons.org
http://www.gardenofwales.org.uk
http://www.visitcardiff.com
http://www.cardiffcastle.com
http://www.museumwales.ac.uk/stfagans/
http://cadw.wales.gov.uk/daysout/caerphilly-castle/?lang=en
http://cadw.wales.gov.uk/daysout/castell-coch/?lang=en

@James: Thanks for all your details and link suggestions. Those are very helpful!

@Keith: Ah yes, I will be sure inquire anything else about Tenby in the Wales forum. I had no idea where this place is in the first place, hence the "England" sub-forum. I'm sure I will enjoy this place, it is now under my list of must-visit places in the UK!

Once again pointing out the need for a UK forum.