I went to Hurghada at the end of November/beginning of December last year. It was FANTASTIC. We stayed at the Safir Hotel, and the service there was excellent, all the staff (such as Mohammed and Sherif) were very friendly - even making us special cocktails and meals outside by the pool! - and the rooms very really nice too. The hotel was clean and the meals were also really good. Basically, in the restaurant (in the hotel) you choose what you want and help yourself froma very large selection of food. Personally, I'm quite picky about what I eat, and even I loved it. You can also buy 2litre bottles of water (so no worries about that) for about 10 Egyption pounds - thats £1 GBP!! Excellent to take on the boat with you during the day.
We dived with 'Diving World' on a boat called 'Prince Taha' - the dive guides (Shabaan and Aussi) were brilliant, very good at pointing out things we'd otherwise probably have missed (like LOTS of stonefish, hiding in the sand!). The food on the boat was also excellent. We all had our own dive kit, except for cylinders and weight belts, which were provided by Diving World. Except for a couple of dodgy O-rings on the cylinders (quickly and easily sorted) these were fine. The dive briefings included pictures of the sites we would be diving, maximum depth, expected bottom time, likely marine life, etc etc... No problems there either.
I would highly recommend both the Safir Hotel and Diving World. It was the first time I'd been to Egypt (or indeed, abroad!) and the hospitality was excellent.
As for Hurghada itself... Yes, the taxi drivers DO drive like maniacs! But you can get a taxi for 7 people for 1 eygptian pound... That's 10pence british money... Although of course we always tipped!
The prices over there are amazingly cheap, and the nightlife is pretty hood. I can't believe no has mentioned the 'Papas' bars yet, or 'Papas Beach' nightclub! BTW, if you buy a metre of beer (11 glasses in a rack) at Papas, you get a free t-shirt.
I think we ended up with about 8... :S
As someone has mentioned already, they don't force tourists to be conservative with the way they dress, though it's always best to respect other people's culture and way of life and dress and act appropriately. I didn't have any hassles (except for a few guys in the bar occasionally, which my male friends quickly acted upon!) and would certainly love to go back there. In fact, I wish I was there right now!
We dived sites around Giftun Island (including drift dives), Tirta el Fanus, Eruk Gigi, Eruk Diana, a couple of wrecks... Also, on the last day (as we were not allowed to dive the day before our flight home) we went quadbiking and camel riding in the desert. That was amazing! So much fun. There is quite a lot to do in Hurghada other than just diving. But you couldn't go there and not dive - the diving is absolutely incredible! Totally different to here in the UK... average vis. of 30m+, as oppsed to 1-5m (if you're lucky!).
I've attached some pics; hopefully they will work (never tried this before). I have hundeds of them from the holiday!