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Spain 12/20-12/30 Rent a Car , Rail Pass or fly to certain cities?

I have an RT ticket from LAX to Madrid. I've never been to Spain and want to see the country. I'm a quick traveler and can usually see a lot in a short amount of time. I want to go from Madrid to Barcelona and then along the coast to Andalucia, ferry to Morocco and back up to Madrid. I'm thinking car rental because of the freedom, but I also saw that it's inexpensive to fly from Madrid to Barcelona and maybe pick up a car there. I would appreciate any comments or info. Thanks.

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From Madrid to Barcelona, nothing beats the AVE hi-speed rail, downtown to downtown. www.renfe.com is the Spanish state railway site where you can buy advance tickets up to 62 days in advance fo up to 60% off.* For Bacelona-Granada, fly. Check Vueling and Spanair on that route, but book ASAP for the best deal. * Rent a car in Granada and drive to Tarifa (you'll have to spend the night unless you get up around 3 am) and take the ferry to Tangiers for the day (www.frs.es/en) then drive back to Sevilla. From Sevilla to Madrid, the aforementioned AVE high speed train. * Realistically, that'll give you (once you subtract travel time) about a day and a half in each location. I would STRONGLY suggest you drop one location (my preference would be Barcelona) to slow down a bit and actually see something of the places you will be visiting. * As an aside, you will also have to book your tickets in advance for the Alhambra in Granada (www.alhambra-tickets.es is the official ticket site.)