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If you're planning to go to Iraklio to see Knossos and the Museum in the near future, think again. The Museum was closed until further notice in May 07, so check before you go. Knossos is probably the least well conserved ancient site I've seen in a long time. Interesting if you're into Victorian restorations of ancient buildings, but most of the really interesting stuff is elsewhere.
Incidentally, LP has a Hotel Irini in Iraklio listed in the moderate price bracket. We had rooms on lower floors next to the fire escape with outside doors that had been jimmied and wouldn't lock, non-existent or non-working fridges, and it's impossible to park anywhere close by if you don't jag a spot. When we complained we were given a much better room at the same tarrif, which just happened to be free. Our travelling compangions weren't so lucky. The staff were generally overworked or rude and the manager claimed she's never had a complaint before. We found this hard to believe and headed off to Chania. Great place, check out the Porto del Colombo if you're looking for mid-range accommodation.

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