I thought Carlotta's answer was good. Sure didn't deserve a thumbs down.

How come we do not have smileys on this board? This question is better answered with smileys.

There are a lot of cafe and coffeeplaces in Palo Alto. In downtown Palo Alto the absolute best one is Caffe del Doge, a Venetian roasting company. Known for high quality ingredients, style, and authenticity. You must check it out.

My utmost favorite on University Avenue in PA is Cafe del Doge. This is the first US location of the famous Venice cafe company. Think Starbucks of Italy - just unbelievably better. These guys take the time to make designs on your latte foam. Too cool.

California Ave has a nice neighborhood feel, good for the coffee/restaurant scene and nice for walking around. But you'll pay big bucks for a 3 bedroom in this area...

don't forget Cafe Borrone. this place is the most famous hang out spot for European community of Palp Alto, Stanford and Menlo Park.

Palo Alto certainly ain't San Francisco, but we do have our fair share of lively coffee houses here south of SFO! :)

University Ave is a good place to start, with University Cafe possibly the quintessential startup/VC coffee heaven. The paper tableclothes are perfect for sketching out your latest startup plan! Coupa Cafe, just off University Ave, is also pretty vibrant. Further south in Palo Alto, in the city's "second downtown" on California (near ECR & Page Mill) you'll find Printer's Cafe. Good coffee, wifi, but a much quieter place.

I hear that Coupa cafe in Palo Alto is the place to be. Free Wifi, delicious coffee and buzzing with the latest start-ups.