My husband and I just got some free time and are planning on booking a 7-10 day trip to Panama for early May. We're going to fly to Panama City and we'd like to see the Canal while we're there. Then we'd like to got some beach time- somewhere kind of quiet but where we can also get some drinks and do some scuba diving. Bocas del Toro and San Blas both look great but it looks like the options are either to fly or take a long bus ride. We'd rather not fly if the flights are >$100 USD but they both look like long bus rides. Does anyone have any recommendations for a good romantic beach town where we could do some diving but is within 5 hrs by bus from Panama City? We'd like to pay under $50 USD/ night but would pay a bit more if necessary (up to maybe $80 USD/night). Thanks for any advice!
try panamatravelunlimited for a canal tour. i did the half trip, from Gamboa (south lake) to the end of Amador. lots of cruise ship people, but as Rat (of Wind in the Willows fame) said: "There is nothing - absolutely nothing - half so much worth doing as simply messing about in boats."

Thanks, Eddy!
We would also be willing to fly to a nice beach area if we could get a return for under $100 USD. Maybe San Blas?

I don't think that scuba diving is allowed in the San Blas. I've also heard that a lot of the coral in Bocas has been bleached out. Maybe try the Pacific Coast. We spent a few days at Boca Chica, but I'm not sure about any scuba diving charters out of there.
According to Tony Santos (www.theandiamo.com, the only way to do KY) scuba diving is verboten in Kuna Yala. I think he said you can do it in Portobelo, but that isnt really in KY. When I flew to BT, it wasnt much over $100. I thought it was worth it. Stayed at Hotel las Brisas for $15

It does look like Bocas del Toro and Catalina might have the best diving. I don't really see that you can fly to Catalina though and flying to BT is a bit more than we want to spend. We're not sure what to do! Any more suggestions welcome.

Check out the Pedasi area- great diving off Isla Iguana with pedasisportsclub.com You could stay
at Playa Venao if it's not too isolated. Santa Catalina is another great spot as it has good surf, fishing,
reefs, and some of the best Panamanian scuba diving to be had offshore 12 miles at Parque Nacional Coiba.