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Three nights in Lisbon

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Hello, all. We have abandoned our plan for one night in Porto and two in Lisbon and now plan to stay three nights in Lisbon. I have several questions, and I hope you can help.

My most pressing question is where we should stay. We like to walk a lot, and it would be good to stay in an area where there is a lot to see within walking distance so we could end the evening close to our hotel. Or at least an area with restaurants or a lively plaza where we could wind up our night? (It won't be a late night!)

We plan to go to Sintra one day, but we also would like to see the coast. Is there a day trip that you could recommend for us to go to the coast? We would like to use public transportation, if possible, but we will have a car.

Which brings me to my final big question: What should we expect in regard to driving? Some posters say it's not very difficult, but I also have read that it's terrible. I expect it's somewhere in between. I would like to park the car somewhere and leave it there for the duration of our stay. Any suggestions?

Thank you very much for your help.

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