I visited Palanga with my family and our friends (4 adults, 3 children) in July 2011. We stayed in this beautiful house only two nights but we really enjoyed it. Everything was new and clean and rooms were spacious. There were also some nice extras in our use: computer, common living room (in addition to our private lr) with PlayStation and other games etc. It would even have been possible to use sauna and Jacuzzi (for extra fee) and to barbecue, but we didn’t have time for that. Owner of the house is really nice and helpful.
The house is located few kilometres from Palanga, but easy to reach by car and I suppose that taxi to the centre won't cost much (we were there by our own cars). Neighborhood is quiet so you can take a break from flurry in Palanga.
I definitely can recommend this place to stay!