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7 Night Portugal Itinerary -- Help!

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Hello, we are spending 7 nights in Portugal in July, and I need some help sorting out a good, feasible itinerary. We fly in and out of Lisbon, and we do not plan on renting a car, so we'll be dependent on public transportation.

I would like to see Lisbon and Porto and take day trips to at least Sintra/Cascais and the Douro Valley. I was considering the first three nights in Lisbon, two in Porto, and the final two in Obidos (to catch the Medieval Festival--is it worth it?) and then we'll be back close to Lisbon for our evening departure.

I am noticing that that transportation from Porto to Obidos isn't the most direct/convenient; is there somewhere else you would recommend staying, or would it be best to just split time between Lisbon and Porto and take day trips, and how long in each place?

I have been reading about Portugal, and there are so many places I want to go that I'm having a hard time narrowing it down with our limited time, and I'm driving myself crazy.

Any suggestions/encouragement you can offer are appreciated!

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