We stayed in Palheiro Village on April 2013, unfortunatelly just for one week. This place is magnificent. We had one-bedroom apartment #20. It was very spacious, clean, fully equipped with everything you need to have a good holiday. And it had fireplace where you can spend romantic evenings :) Balcony is very big with two sunbeds and big table with chairs. And what was most exciting is magnificent view of Funchal bay.
Only disadvantage is whole resort is located 400meters above sea level so temperatures are 3-4 degrees lower.
I hope we will be able to stay at Palheiro Village once again soon. :)More