Actually there is a station that serves Albufeira albeit 6kms from town in Ferreiras and has six express services daily to Lisbon.
Have a look at the following recent posting on my blog:
http://barlaventostravelblog.blogspot.com/2007/06/travelling-from-albufeira-to-lisbon.html
Also go to the main page:
http://barlaventostravelblog.blogspot.com
On the right scroll down till you get to the panel:
>>>Algarve & Portugal - Travel Transport Links
>> below that you will find a link
↓ Portuguese Railways - Summer 2007 - Lisbon - Algarve Faro/Lagos Timetable
Click on it and you will be able to download the latest rail timetable in pdf format from CP - Portuguese Railways.
As regards renting a car if it is a villa and it is not smack bang centre you will be a bit frustrated.
A car will also allow you to explore the Algarve a bit - its not big! Read some of the articles on my blog. They may help. Additionally, if you don't find Albufeira to your liking you can with a car always easily visit other parts of the Algarve
If you do decide to hire a car - be careful. There are many cheap offers out there and then when you go to pick up the car .........say not more!
I usually recommend Luzcar who can provide you a car on arrival at Faro AIrport. Their prices appear a bit higher than others but there are all inclusive. I have know them for years.
You can find them here:
http://www.solpraiaferias.com/carhirealgarve/index.php?option=en
Note the recent warning that has gone out on certain forums about AirAuto. They have been withholding deposits and refunds to several clients recently and there appears to be a problem between them and clients.
The following links may also be useful:
http://www.solpraiaferias.com/index.php?content=cheg_en
and
http://www.algarvebus.info
