Take an $80 round-trip flight to the San Blas islands. Stay with a local Kuna and learn about their culture, eat meals with them, and explore some of the gorgeous 300 islands at your fingertips.

I can vouch for Barro Colorado and Taboga (like Lena P. said). They are both great places if you like doing the "natural" thing and hiking. Portobelo also has some great snorkel/scuba options (PADI cert?). Santa Clara is a great beach area if you just want to chill out.

Just 45 min away from Panama city are still indian villages in the middle of the jungle. I've lived there for 2 months and it is really fantastic to visited that.

Totally agree with Lena P. In the city you could go to "Panama La Vieja" (Old Panama), you can have a nice view of the new skyline from the tower and at the end get a coconut water directly from the coconut for 1 dollar.

Plenty to see - Casco Viejo, Parque Nacional Soberania, head up to Lago Gatun or the island Barro Colorado with the Smithsonian Institute, Plaza 5 de mayo for the artisan market. You can head to Isla Taboga or las Perlas, or even fly out to Kuna Yala. Panama is not too bad for tourists - rent a taxi for a day, maybe $10-20. Heading toward Colon, avoid Colon City, but visit Portobelo and Costa Abajo. Heading west, try any of the beaches along the Pacific side - Coronado, Santa Clara...or take some back roads and see spectacular mountains and valleys.

Taboga.

take a cap, it's not expenisive (around 10 USA dollars). Its good to see part of old city and new one, great shoping !

Uragua avenue on friday and saturday night. And Elite II on Calle 50.