Beautiful city! I was there Dec 2000. I took a train from Dresden to Prague, and sat next to some guys from Hungary. The CZ border patrol wouldn't let them in the country, and made them exit at the first station outside Prague. The woman that shared the cab with us thought their story was a little fishy as well. The only thing I found odd was their smell.
I stayed in a hostel just outside Wencelas square (home of the Velvet Revolution). I don't remember the name of the place, but I'll dig through my travel stuff to see if I can find it.
Prague is the original home of Budwar (aka Budweiser). Adolf Miller-Weiser (Anheiser-Busch) stole the name from them some time ago, and marketed it here in the states. When Budwar tried to export to the US, they had legal problems, and had to market under Budwar-Pils. I think the CZ stuff is mounds better (they've been doing it for a while longer). We sat in a neiborhood pub one night and drank until they kicked us out. It wasn't hard to get hammered because the beers were about 40 Krona (15¢) at the time.
I would recommend taking a walking tour. This was something that I neglected to do, but I did catch quite a bit from them in passing.
The Old Square was wonderful, and you have to watch the clock on the hour.
The bridge that connects Old Town and New Town across the Charles River is beautiful. Some of the statues are almost as old as the bridge (c 1200, IIRC).
I have no idea what the place will look like after the floods they had last year. I understand they took quite a toll on the city and many artifacts of history.
I'll see if I can get to some more details later.
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