I have been living and working in Madrid for several months now and it's fantastic...the climate, cost of living, quality of life...I wont be returning to the UK in the long term!
Haven't been too involved in looking for property myself yet but am planning to buy something on the coast, but cannot comment on the does and donts...there are some fantastic properties and lovely areas...and no doubt good estate agents and bad...would recommend they team up with friendly people english or spanish who ca guide them thru all the pitfalls and paperwork...this is what I am doing...