I've been to Madeira a couple of times; once in December and twice in July/August and I think it is a wonderful destination. I've stayed in appartments in both Machico and Funchal and I prefer Funchal above Machico. Machico is nice for a days visit but the athmosphere is better in Funchal where the people are more open and friendly.

Renting a car and drive around the island is a great idea. Madeira is not very big but because of the montains and the curly roads it takes some time to get from one place to the other. The food is delicious and the famous Madeira wine also!

Regards, Marianne Netherlands