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Summer Trip to Portugal

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Hi
I am new to Fodors and looking for a little advice.
We are a family of 5 travelling in late July early August for 17 nights in Portugal.
We plan on flying to Porto to spend 2 Nights. Then Evora for 3 nights. We are then going to Lisbon where we will meet another family of 4. Stay there for 3 nights. We then want to spend 6 nights in the Algarve and back to Lisbon for the rest of our trip befor flying home.
I have a few questions and any help or advice would be appreciated.
Should I drive from Porto to Evora and then to Lisbon or take a train? I don't think I'd like to take the bus. The same question goes for the Algarve. Also what is the best area to stay in the Algarve and do I need a car to go from town to town? Or should I pick an area and stay put? We like going to the beach but also exploring and seeing things.

Thanks alot for any help

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