Cebu is nice, althought a week is too short a time to spend there ;-) Me
and my wife spent there a month around Xmas back in 1996. We had a
'working holiday' working as dive masters with Scotty's dive center on
Mactan island (http://www.divescotty.org).

If you arrive by plane, you'll arrive on Mactan airport. You can use
Mactan as a base if you wish. There are quite a few dive centers on the
island. If Scotty's still operates the way it used to (and I don't see
why not, since most of the staff was the same the last time I checked
year ago, than it was around the end of 1996).

There are good dive sites around Mactan, although nothing special.
Reeftops are largely destroyed by dynamite fishing, so everything starts
when you go down 5 meters. Dives are predominately drivt and wall dives,
and there are one or two nice caverns for you to visit if you're so
inclined.

If you manage to book a trip to Cabilao (a full day trip from Mactan)
you'll get two  (or three) fabulous dives.

A week is a bit short for changing to the other side of Cebu island, but
if you have the time you might enjoy a visit to Moalboal. It was a town
full of divers, the area where the accomodation and the diveshops are
was a sleepy dive freak town at the time we visited it.

If you plan to move further away from Mactan, be sure to be closer to
the airport (preferrably on Mactan, definately no further than Cebu
City) early enough. Travelling on the Philippines may take a lot longer
than what you'd think. We made it a principle to be within taxi
drive/tricycle ride distance 24 hours before the departure. Buses and
bancas can miss a trip or two, you know.

This joke describes their attitude toward time pretty accurately:
A Spaniard, a Mexican and a Philippino discussed the common words they
had. They discovered that each of them used the word "manana", alhough
with a bit different meanings.
The Spaniard: "For us manana means tomorrow"
The Mexican: "The meaning to the word for us is slightly different. It
means: not today"

The Philippino: "We have the word as well, and it has a bit similar
meaning than the Mexican version, but it lacks the terrible sense of
urgency that the Mexican version has"

Feel free to send questions via e-mail or here.

Dunno what Cebu is like but I was in Palawan for 3mths at the start of the
year and had a fantastic time.I was mainly based in Coron (Busuanga island)
just NW off the tip of Palawan.I was diving with SeaDive who I would happily
recommend.The diving was superb if your a wreck fan as its the 2nd largest
wreck area outside of Truk. The DMs are all locals and their knowledge was
astounding.
Dont know if your taking your own kit (I always do) but if not, the rental
gear seemed to be ok.
Finally - It's SOOOOOO cheap :-) I couldn't believe how much it DIDN'T cost
me!! I felt so guilty when I got the final bill that I bought all the dive
staff a crate of beer each- bargain at ?3.50 / $5!!!!!!!
As for diving with a hangover / still half hammered, I'd heartily recommend
it.
As for the foreign office advice - completely disregard it! The chances of
you being mugged/ shot or kidnapped are ridiculously low.
Damn - I wish I was going with you :-(
have a great time

I spent a while in Moalboal. Its good points are that it is away from
Cebu city has good restraunts good dive sites and you can walk to most
of the dive shops within 30 mins. It is cheaper than Macatan and I hear
that the sites are better. When I was there (2000) there was a sardine
schoole of may be 2,000,000