I just got back from a weekend in Granada, my first visit there. The Alhambra really is incredible and worth the trip alone. Don't miss the Generalife especially since it is part of the admission to the Alhambra. I had bought my ticket from BBVA in advance, but it looked like walk-up purchases were fine, even on Sunday afternoon. The Albaicin hill was also wonderful. Go all the way up to the top to Iglesia San Nicholas for the view, especially of the Alhambra across the river at Sunset. Just about everything you would want to see is within walking distance. I took the train, and it was about a 20 minute walk from the station to the center of the old town. There is a street, calle Navas, with lots of tapas bars that was not too touristy. On the Talgo train, I slept through "Stuart Little 2," and the screen was too murky to watch "Signs," but on the way back, I practiced my Spanish comprehension by watching "The Tailor of Panama" and "Showtime." The Talgo starts and ends at Chamartin but also stops at Atocha, though be advised that the Atocha stop is at the Cercanias station and not the grand lines.
. GG, as far as I know, the Alhambra is NOT free on Sundays. 
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