Paula, we were just there at end of April for our 25th wedding anniversary. Stacy and I honeymooned there, have taken the kids numerous times over the years, and felt like it was a return to paradise!
The Bubble Room is still the coolest, most unique place to dine...try the Eddie Fisherman Grouper cooked in a brown paper bag, and the Red Velvet cake is the legendary dessert you won't be able to eat all of! The Mucky Duck is actually the place that is closest to the Red Bar - fun, funky, unpretentious.
As for places to stay, while many of the resorts were built in the 1980's, there has been quite a bit of rebuilding and modernization since the hurricanes of a few years ago. While we didn't stay there, the talk among the locals was about South Seas Plantation at the far end of Captiva. They have spent many millions rebuilding, renovating and transforming their piece of paradise into a truly special place. Also look up Sundial Resort & Condominiums - again, major renovations and freshening to make it an even better experience.
Shelling is the big attraction - wake up around 5:30-6am and head to Bowman's Beach for the best shelling before all the lesser-informed tourists start showing up around 9am or after. Bring a bag or beach bucket and wear flip-flops or water shoes, as there are so many shells that bare feet might start to hurt...
It's a different feel from 30-A, as visitors there hail primarily from the midwest and northeast U.S. rather than the typical 30-A Nash-Lanta-Ham crowd. Not a bad thing, just a different vibe to that area. Enjoy!
