Hola all,
Just returned from a trip that included Madrid & Barcelona, and wanted to offer observations for anyone headed there soon:
Hotel Lope de Vega (listed in RS) in Madrid is AWESOME -- clean, quiet, well-located, well-run, and with little freebies available like fresh apples and nice bath products. Looks pricey in Rick, but our room was only 65 euros on a Sunday night when we booked in advance on the hotel's website.
Toledo is an easy 30-min train ride from Madrid. The trains do book up, so don't necessarily expect to go to the station and hop on the next departure. Consider reserving earlier in the day.
The overnight train from Madrid to Barcelona was awful. I've slept happily on many night trains, but not this one. The 6-berth compartment must have been from the 1960s, and the ride was the roughest I've ever been on -- screeching, bumpy, etc. If you're a light train sleeper, this might be one to avoid.
Park Guell in Barcelona is charming, but go early or late to avoid hordes of crowds. Most crowded sight by far.
Two different American couples at our hotel in Barca reported stolen wallets on the Ramblas. Like Rick says, WEAR YOUR MONEY BELT! On the Ramblas, we actually stored ALL our cash in our money belts (even the petty change) just to be safe.
Hostal Opera (in RS) was a fine budget choice for Barcelona. Clean, good location, very bare bones. And paper-thin walls. Bring earplugs.
Two final Barcelona plugs: Rick's suggested tapas crawl on Carrer de la Merce is fabulous, and Elisabet's restarant ("Off the Rambas" in RS) was truly as local as you can get. Great value for lunch.
Overall, loved Spain!!!