I'm thinking about taking 1-2 weeks and maybe backpacking from Barcelona to Lisbon via Madrid. I don't have too much time but could anyone suggest attractions, how much time to spend at places etc?
And how much do you think I would need to budget for if I'm staying in youth hostels and taking buses etc? Or should I put it another way, I have around 1000euro is this enough for such a trip?
I read your message and maybe I can help you with some information. I live in Oporto, which is the second city of Portugal and I have an idea about the prices in Lisbon also.
Staying in a youth hostel normally costs around 16 euros per night in Lisbon. It´s not very expensive comparing with Amsterdam. A expresso costs around 50 cents and a good meal in a medium restaurant costs around 7 - 10 euros. In some touristic places this prices are higher! Be carefull! I don't know exactly the price for taking the buses but I'm sure it is cheaper than Netherlands, I've also been there and I found it expensive.
I can´t help you with the travelling prices from Barcelona to Lisbon but I'm sure that 1000 euros is enough to spend a great time here in Portugal!
I have travelled on an overnight train from Barcelona to Madrid and paid around 66 Euro for a return ticket in a fairly comfortable seat.
Also keep in mind you won't be spending the money for a hostel that night, so the fare is quite reasonable.
From Madrid to Lisbon there's also an overnight train with seats starting from 54 euros one way. Maybe you also want to check http://www.renfe.es for more info. Don't know about buses, but am sure the train's a lot quicker.
On the way from Barcelona to Madrid is Zaragossa, I haven't been there myself, but I've heard it's worth a visit. I'd personally stay at least 3 full days in Barcelona, Madrid and Lisbon and split up the rest of your time in smaller cities.
I also think your 1000 Euro budget for two weeks should be fine, if you budget around 20 Euro in a hostel per night.