Me and 4 mates are in Madrid from Monday 19th - Friday 23rd and would obviously like to try the nightlife. One place i have noticed in particular is the 'Palacio de Gaviria' which is right by Plaza Mayor...has anyone been to this club and is it recommended ??? It seems they have an exchange night every Thursday and seems a good night to meet other people of different countries.
Some of my friends also like silly things like Karaoke etc...does anyone have any information on this or any recomendations for a really decent night out....any help is much appreciated.

You could start off at the Palacio de Gaviria , and then go, along with those new people you've met , to Joy Eslava , wnich is only a few metres away in calle Arenal.
Other possibility is to go bar/disco hopping around the Plaza de Santa Ana, to places such as Los Gabrieles, Viva Madrid, Ducados Café, Villarosa, Cardamomo, España Cañí, La Fontana de Oro(close to Sol) or Manhattan Martini Bar(this one closer to Huertas)*....

If you're planning on a looong nite, you might combine both; in this case, I'd start at around 23:30-24hrs. 'tapeando' and having a few beers/wines/cocktails....at Sta. Ana, and then after 2:30-3AM I would head towards calle Arenal crossing La Puerta del Sol.

Other possibility is to head down to the Chueca area, but I'm not too familiar with its bars, I only know some nice restaurants; and Ï like a couple of places though; Bar Cock, and Del Diego, both only a few metres apart as well.

*Note: there are MANY more places to go in the area, these are just my personal favourites.

Palacio the Gaviria is my favorite but remember you must arrive there early if you dont want to keep the line for an hour.

Great info! We will definitly check out these places. Thanx

Joy sucks. Crap music and 10 EURO a beer. We were there on friday night.

On saturday night we found a wicked little Cuban place in the same neighbourhood. 10x better.

It's not one of my favourite places either, in fact, I've only been there about three times and to see fashion shows; I don't like those type of places, "just for the beautiful people" , but many of my friends like it, and specially, most of the foreigners I know, love it.

I'm curious though, what kind of music were they playing, I think it should have been pretty "standard", or varied rather, no? maybe you didn't like the Spanish music....