The two highlights of Merida for us were the Murals by Castro Pacheco in the Governors Palace and the coconut sorbet in the Dulceria y Sorbeteria Colon, just along the side of the main plaza. We had the ice cream at least once a day when we were there, and Shiry got quite stroppy if I suggested we went anywhere else.
we stayed at the Trinidad Galleria - less a hotel, than a junk shop/gallery with rooms, but very friendly and convenient for the centre of town.
We arrived on saturday, and in the evening the streets in the centre were closed to traffic and they set up stages for bands.
We had a couple of very good meals at El Trapiche, a cheap restaurant just off the main plaza on Calle 62 between Calle 59 and 61. It was recommended by the guy in Trinidad Galleria.
While we were in Merida we went on a trip to Uxmal and Kabaah.
From Merida we took an overnight bus to Palenque as the trip was 8 hours. This was a big mistake. The bus was very comfortable with air conditioning, reclining seats, toilets and video. While we were on the toll road everything was fine, but the last five hours were on local roads. In Mexico every time you enter a village, or pass a few houses, they put vicious speed bumps (Topes) in the road. So every ten minutes or so the bus slowed to a stop, we went over the bumps and woke everyone up. I suppose a heavy sleeper might be able to sleep through it, we couldn't. We arrived in Palenque at 5.00 am exhausted.