Hi Delta Xray,
I did my PPL in the same airport in Madrid (Cuatro Vientos) but with Aeromadrid, who are the biggest school there. Aerofan seem ok, and I have had chats with them about continuing courses.
Apart from that in the same airport there are American Flyers and Aerotec. As far as I know Aeromadrid are the only ones with their own maintenance hangar.
The main problem I encountered was that I elected to do the modular course (and still am v slowly) and the result was I had to do the ground exams in Spanish. If you are doing the whole integrated training this is not a problem.
With regards to the South of Spain, I have no detailed knowledge, only that there is a school in Jerez which Britannia certainly use. Something like European Aviation Training I think.
Hope this helps, good luck and feel free to PM me if you think I can help further.
Graham.