We have just come back from a week staying at La Fuente (Feb 2012) and have to agree with everyone else - the location in the middle of town is great, some excellent bars right outside, can be good-natured noisy until late but as the area is pedestrianised there is no vehilce noise, and we found it quiet in the mornings. Breakfast on the roof terrace was superb, and the staff could not have been more helpful.
We found the accommodation fine (not the Ritz and not the price either!), with everything we needed.
The bus service on La Palma is excellent. Any bus trip, whatever the length, is 2 euros - which means you can do a round-island trip for about 6 euros. If you buy a ticket (available from La Fuente) it will be even cheaper at 1.60 per trip.Only drawback is not being able to get a bus into the national park, but you can get a taxi from the National Park Visitor Centre just outside El Paso, which will take you up to the Caldera de Taburiente, and then walk back. We saw this advertised for 8 euros (after having slogged ourselves up the trail!) but didn't get to try it out, so maybe best to check first.
