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Transportation questions and advice in Southern Spain

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We are starting to plan our month in the South of Spain from the end of Jan-Feb 29th, 2013. We have booked accommodation in Malaga, Denia and Tarragona with the last week undecided. We are flying in and out of Madrid and have a couple of days at the beginning and end of our travels in Madrid.
So here are some of my questions:
1 For that length of time are we better to rent a car or lease it? with whom would you recommend and can you pick up in Madrid and drop in Barcelona?
2. We have a credit card with car insurance on it but if we go that route what extras will we have to pay and how risky is it? like in Lisbon they wanted a deposit on the car for the total value of the car!
3. We are considering taking the train to Malaga and picking up the car there and dropping the car in Tarragona or Barcelona and taking the train back to Madrid at the end of the trip--is this a possibility and a good idea?
4.How long does it take to drive from Madrid to Malaga and is it worth i? tAnything worthwhile seeing? What kind of tolls are on the roads-also how long to drive Barcelona to Madrid and tolls etc?
5 Any reasonable and safe hotels you can recommend in Madrid?
6 Any other advice you can give us-

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