Visited Diana Palace in May 2004 with my wife and 3 kids under 12. Had booked a 2 bedroom apartment SC, but their idea of 2 bedrooms is 1 bedroom with a bed in the tiny living room. Very dissapointed, wasnt even enough chairs round the tiny table to eat breakfast together. Complained to Direct Hols rep who "could do nothing". Pleaded with the hotel management and was rewarded with a much better apartment, although still only one bedroom, but with seperate living room and small kitchen area.
Pool is nice, plenty of free sunbeds, kept pretty clean. Lovely gardens.
The waiter Stathis in the poolside resteraunt was great, everyting a waiter should be and helped make for a great holiday.
No organised entertainment through the day at all, some on the night, but moderate - you need to make your own!.
Eventually found a perfect bar for us and the kids. Turn left out of the hotel, up the bank and left again to the Tropicana. Had a cinema showing the latest films for free and cheap drinks (1.5euro/pint - half the price of many others)Pool tables, Quiz nights which were entertaining.
Local beach was poor, but a cheap taxi ride to Crystal beach or Kalamaki was well worth it)
Some good restaurants, some rubbish. Steer clear of Tiffanys (opposite the hotel) he is a total pest and the food was moderate.
Castaway was a complete rip off, advertising free kids meals, but the bill was higher than anywhere else and the kids portions were tiny. Lots of people trying to drag you into their bars which was annoying, but you get the hang of telling them where to go in the end! Amazing street artist, charcoal drawing of the kids was fantastic, about 60Euro.
Airport was crammed on the way home, make sure you have water/food with you.
Overall - a good holiday, its what you make of it!

Just one more thing, food at the hotel restaurant was excellent, buffet style, lots of local dishes, plenty of choice to suit all tastes. Didnt try it till near the end of the holiday, but was the best quality/value in the resort.