In reply to Steve Gough:
another vote for Sagres; but beware that there can be a bit of localism around some of the Sagres breaks. If you haven't already, try looking at magic seaweed (
http://magicseaweed.com/Sagres-Tonel-Surf-Report/128/) for some ideas about accommodation. I've stayed at the Ocean View apartments in Carrapateira and can definitely recommend them.
If you can, hire a car when out there, one of the great things about surfing in the Algarve is that you have 2 coastlines, this giving a lot of options and versatility depending on the weather and swell, but you need to be mobile to take advantage of this. Free camping at a beach called Branco's (barrancos) on the S coast (or at least there was when I was there), but you ain't getting there without a car!
If you are looking for surfing lessons as well it might be worthwhile booking into a surf camp for at least part of your stay as that will sort out your lessons, equipment, accommodation and transport in one package.
cheers
rb