I no longer recommend Faro as a principal entry point to the Lagos, Algarve region for the reasons that Cubsur outlined.
Even for a family, where the cost if hiring a car for one's stay might prove economical, the stress of the electronics tolls payment system and the ongoing apparent increasing abuse of clients by many car hire companies, makes Faro very unattractive.
It is only worth coming via Faro if you are family group of 4 upwards and then take a private shuttle. Then, if you need a car for running around, hire one here from on off our reputable local firms.
For solo travellers, couples and pensioners, it is much easier and in, some cases, cheaper to take long distances coaches (and rail when not on strike) from Lisbon. It takes an hour or so longer but one gets to see much more of Portugal.(at least in the day time) There are also up to 18 buses per day between Lagos and Lisbon, much more than there are to Faro.
I know that you are coming from the Manchester area which has no direct flights to Lisbon but Easyjet.com will be operating Liverpool to Lisbon as from the end of March 2013.
