A city hugely popular as a tourist destination, Granada is problematically populated by people who don't like outsiders. The Andalusians are not famed for their friendliness. This is something you have to accept before going, but you must go, it's quite spectacular.
However, be careful, stay away from the city centre. The Hoteles and Pensiones in the middle of the city are crammed full of zealous foreigners and 'Granadinos' with attitude.
Perched up on 'the' hill, overlooking the Alhambra, are the white houses and cobbled streets of the Sacromonte, just next to the Albayzin. It's a world within itself, yet close to everything. The views over the Alhambra are breathtaking. To the north, the snow-capped Sierra Nevada towers over the province.
The beauty of this place is also the lack of tourism. No one knows about it. I shouldn't be telling, perhaps. If you see this, and get the urge, go, if you don't you're making a mistake. There's no way one would fail to enjoy this area.
It's easy to get into the centre, too. Simply drop a ball, and follow it. It'll take you all the way there.
rentals.loquo.com/spanish/post/49227&pics=1#2
Send them an email, say you want to stay, tell them when, and roll up.
Don't understand this tip. I live near Granada and stay in the centre regularly. There are loads of small hostels, all very friendly, and many things to do and see. The Granadinos' attitude is one of warmth and friendliness. Sacromonte and the Albaicin are full of tourists in season - it's ridiculous to say no-one knows about the area. But it's still lovely and well worth a mooch.
Is this your business?