We ended up in a hostel called Luna's Castle, which was pretty cool. Very large, 3 story building, with a bar down below (that gets a little loud sometimes), but a cool place. We met Guillem, the skipper of a sailboat that frequently does this passage, as we entered the hostel, and he talked us into the trip. Only problem was we had to wait about a week for the boat to depart. Many hostels here have info on sailing trips to Colombia and San Blas Islands. Apparently Luna's Castle and Mama Llena are the biggest ones, with the most info.
First night there, we ran into Juan, a Spaniard we met in Boquete, back up the road...Ended up hanging out for a couple nights, and laughing, again, about our stay in Boquete at Palacios Hostel...
Panamá City is huge, but we found it to be very hot, and a little boring, especially with spending a whole week there...If you plan on spending some time there, stay in Casco Viejo, or at least do some exploring in this old neighborhood. It has some great architecture, and some nice sightseeing opportunities. There's a great little brewery right around the corner from Luna's Castle called "Rana Dorada," that has four beers on tap. My favorite was the Porter, which was a pleasant change from Balboa and Panamá.
Finally our week in the Panamanian heat came to an end, and we crammed into a Toyota 4runner, with 2 other guys, headed towards the Caribbean coast to board our ship.