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As we neared Casco Viejo, we noticed a fish market (Mercado del Marisco) and stopped in for a look and a break from the sun. As expected, there were fish everywhere - there were some strange looking fish, as well as the usual shrimp, octopus, etc. It actually smelled ok, given the incredible heat outside - but we were in no shape to buy and cook a fish :). If nothing else, it gave us a sense of one of Panama's quickest growing sectors - fish and seafood exports. Now came the time where the streets got a little shady (not with regard to the sun :)). They became narrower with people everywhere - although this bunch of people weren't the friendly kind going to work/school crowd we had encountered earlier. The good news was that we were close enough to Casco Viejo that there was a random tourist biker cop here or there - so as long as we weren't stupid, and went down the wrong street, or pulled out my camera :), we were going to be ok ...... and we were :). A few minutes later, and we ended up in Casco Viejo (fheww!). '
I do have to comment, that by now, we had seen half a dozen tourist cops - and when I say tourist cops, I don't mean the usual guards that can't really do anything - I mean gun carrying tough guys who really will serve and protect! So, by now, we're feeling pretty good about our safety, even in these narrower streets.
By now, we were a bit hungry and grabbed some lunch at the only restaurant we had seen for the last 3 hours! After lunch, looking at the map, we saw we were next to the Presidential Palace, so we took a stroll over. The palace was surrounded by guard posts, situated on the bahia de Panama (Panama bay). I asked one of the presidential guards if we could go past their checkpoint, and he said, "No, por seguridad." So after a few quick snaps of the buildings, we walked on.
We grabbed a taxi to Cerro Anchon. From here, we had a beautiful view of the Panama City skyline, and our first views of the locks of the Panama Canal. Based on the hour's ride roundtrip in the taxi, I can see why many tourists don't make it up here, but the views were incredible, and the taxi cost was only $5! We went back to the hotel and did some research about our next hop over to the carribean part of Panama - the Bocas De Toro - an archipelago made up of 100+ islands. After our research, with the fish market on our mind - we headed out for our first Sushi of the trip (I was dying by now - two weeks without Sushi!). It was actually pretty good, although the soy sauce was a bit weird (we'll take it as the Panamanian version of Soy sauce - we think it had vinegar in it??).
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Ahhhhhhhhhh - that's the best way to describe a good night's sleep after 3 horrible ones!! We liked it so much, that we took it easy this morning, and snoozed until 8:30 am. Last night, we asked the hotel manager if it was safe to walk to Casco Viejo, or "Old Part" of Panama. He looked as if we were crazy, but then realized we were talking about the next morning. He hesitated and said it was ok - so we took his word and started our walk. Immediately as we left our hotel, we noticed the scene had completely changed from the night before. When we had first arrived, the street was deserted except for a few possible hoodlums and police. Now, there were people everywhere, walking in all directions. Def. a good feeling to be amongst the people, both for the experience and the safety. 
Jaimie and I grabbed some breakfast at a local tienda and were on our way. We walked along the pacific ocean water front towards Casco Viejo. It was sweltering in the sun! We were drenched within a minute - as we were no longer protected by the trees and buildings of the streets. At least our walk wasn't in vein - it was beautiful to see the Panama City, with it's sky scrapers right on the water front, on one side of us, and on the other, we watched huge ships line up for the canal crossing - que lindo (how beautiful)!
The streets are relatively narrow, and the architecture gives a feel as if you're in the French Quarters of New Orleans. However, aside from some of the churches, embassies, presidential palaces, etc, the area, in general, is decrepid - most buildings in need of serious repair, some completely abandoned. Despite the buildings state of disrepair, the feel of Casco Viejo is one of beauty and enchantment, with narrow cobble stone roads of this tiny peninsula. 
We came upon Parque Herrera - a general who played an early role in Panama's independance from Colombia. We moved on to the Iglesia of San Jose - where the famous Altar de Oro - gold altar lies. Pirate Henry Morgan was sacking the old Panama City in 1671, and legend has it that the priests painted the altar black (or white) and covered it with mud to hide it's true value. Ingenious :).
Moving on, we took a visit to the French Plaza, where the French Embassy lies, as well as Las Bovedas (the vaults), where there are/were dungeons in the sea walls. Legend has it that prisoners were left for high-tide to drown (yikes!). Now, a few of the vaults are home to galleries, as well as about 4 of them now house a restaurant and Jazz club (music only fridays :( ). The vaults are actually quite beautiful (now), constructed with brick and beautiful archways (you can almost hear the Jazz music reverbrating off the walls in there!).
From the French Plaza, to Plaza Bolivar, where a beautiful cathedral consumes the limelite. And right next door is the National Theatre. Jaimie and I saw a door open to the theatre, so we just walked in - no one was there to "stop" us, so we walked upstairs into one of the boxes and caught a beautiful view of the theatre. 
We came upon the other side of the palace, where a few more presidential guards were standing. I asked if we could take some photos, and he said we could go and see the palace, as long as he took a look at my bag. So much for presidential security! There were presidential guards scattered throughout the compound, but we were able to walk right up to the Panamanian White House, and grab some photos! I didn't risk pulling out my telephoto lense, for sake of it may be misinterpreted as some kind of weapon - we got out of there pretty quickly :). What was strange is that the Presidential Palace is surrounded on all 3 sides by decaying buildings - very strange.