RACE (the Spanish equivalent of AAA) can do the paper work for you. You don't need to do the tests. They'll accept your American license and give you a European one. What I'm not sure of is the Spanish residency - I had mine when I got my new license, but I don't remember if it was required. I tend to think it probably is.
[ 06-13-2001: Message edited by: MadridMan ]