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Spain/Portugal in Jan. 2008

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So many helped with my recent trip through France (which was fantastic!). Now we (2 adults in late 50's) want to "see everything" in Spain/Portugal, leaving Newark around Jan. 9 for 3 weeks. My questions: is it too expensive to rent a car for that many days (gas, etc.)or should we attempt trains, should we try to follow the intinerary from other tour companies like Rick Steves' 22 days in S & P, should we just skip Portugal and concentrate only on Spain, OR, do you recommend any small size tour companies other than Oat or Odysessy with no more than 22 people? Please guide me! Thanks.

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