Parador de Granada

I stayed at the Parador de Granada in August of 2006, so my review may be a little out-of-date.

You just can't beat the location! While we had tremendous difficulty locating the ticket office, once we did, we were able to pick up our tickets the evening before our visit (close to 8:00 pm when the booth closed). This saved us enormous time in the morning of our visit. We arrived at the Alhambra about 10 minutes prior to our 8:30 reservation, which was worth the price of staying at the Parador. For about 25 minutes, we and another couple were the only ones in the Nazrid Palace. Just a half-hour later, the rooms were overrun with loud tourists, and the spell and the magic were broken.
The rooms were acceptable, nothing grand or fancy, but still nice. (They are renovating, supposedly, but we saw no sign of it.) Public areas are nice, especially the bar, terrace, and restaurant. We ate at the restaurant, and while it was a good meal, was not the best of our trip. Service was better than the food, I would have to say. Again, not a bad meal, just not the best of the vacation, although it was the most expensive (about $100 US for two, including appetizers, entrees, dessert--it was a prixe-fixe--and drinks). There are a few other restaurants within walking distance, but I'm not sure whether they are open at night, or just in the daytime when most people are visiting the Generalife.
With all that said, I WOULD spend the money to stay here again, because you just can't put a price on the location (however, had we NOT been able to pick up our tickets the night before, it would have meant traipsing all the way around the gardens to the ticket office and COST us time in addition to money). As everyone says, DO order the tickets ahead of time on the Internet to get the exact slot that you want. The lines were unbelievable! The Parador can also get you tickets, but I still think you must pick them up, and I was worried that they couldn't secure my first choice of time (but I never asked).