Be sure to stop at the American Colony hotel for a drink or some good food. I prefer the garden terrace, but the cellar bar is nice and dark if you prefer to be a bit more mysterious. The Saturday brunch is awesome.
Don't miss their book store. A great resource for mid-east research.
Really, a lovely place and the all-Palestinain staff are very helpfull.
Oh, since it's a hotel, you can stay there too.
Hey, T.E. Lawrence and Winston Churchill can't be wrong.
Steve