Thanks to those who have given me such great info on travel and where to go in Panama. Any suggestions on where to stay in Panama City? We are interested in history and the culture so new and modern is not a priority!

We stayed at a sweet B&B called La Cresta de Oro in the La Cresta neighbourhood. It's next to the big beautiful church.
Great area, great place, great people.

www.lacrestadeoro.com

I really enjoyed La Estancia on Cerro Ancon; it was convenient to the Causeway (and for going to Isla Taboga) and had great hikes on the hill itself, yet very accessible for Casco Viejo and the rest of the sites.

My report is here: http://www.fodors.com/forums/threads...p;tid=35029544 if you'd care to take a look; I was just in Panama City as I'd been in the Peruvian rainforest for a week first and my main reason for going was the Canal, but I'd love to have been able to see even more of Panama.

I second the La Estancia - we really enjoyed being there. But know that it is a modern apt. sort of bldg there. It doesn't have "charm" if you're looking for that. It has a nice balcony with a view, spacious suites at a good price, spic and span clean, and lots of conveniences: self serve snacks/beer/wine, good cooked breakfast, internet availability, hosts in the travel business, etc etc.