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10-12 day Itinerary for Portugal

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Hello friends,

My husband and I (29 & 30 yrs old) from NYC are planning an anniversary trip to Portugal in July (not a lot of lead time, I know). We want to see Porto, the Algarve and Lisbon and any surrounding areas we can see while there. We have tentative bookings at our hotels (using points), but just wanted to get your thoughts on our itinerary before we booked our flights. How does this look?

7/18/2012 Fly out from NY
7/19/2012 Arrive in Porto; Overnight in Porto
7/20/2012 See Duoro Valley; Overnight in Porto
7/21/2012 See Porto; Overnight in Porto
7/22/2012 Travel to Algarve, making Lagos our base; Overnight in Lagos
7/23/2012 Explore Algarve; Overnight in Lagos
7/24/2012 Exolore Algarve; Overnight in Lagos
7/25/2012 Travel to Lisbon; Overnight in Lisbon
7/26/2012 See Lisbon or day trip; Overnight in Lisbon
7/27/2012 See Lisbon or day trip; Overnight in Lisbon
7/28/2012 See Lisbon or day trip; Overnight in Lisbon
7/29/2012 Fly out from Lisbon

Based on this would you add/subtract days from a place? We were orginally thinking of using trains to get from Porto to Algarve to Lisbon but are now leaning towards getting a car. Which is the better option? We can also get a car just for Porto and the Algarve and give up the car for our days in Lisbon.

Thanks in advance!

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