Karen Colleen and I decided to stay a few days in Guatemala City. Most guidebooks suggest that you skip Guate and start a trip in Antigua or possibly Rio Dulce.
Xamanek Backpacker's is a very nice hostel. A bit over our budget of $7.00 per person per night but we found less expensive digs in San Pedro and Quetzaltenango so it all balanced out.
In Guatemala City we walked around our relatively safe neighborhood, found some interesting places to eat and we took the bus into the city center to catch the market and sights.
We visited El Portal, the bar where Che and Fidel were known to hang out. It felt like it hadn't been changed at all in the years since Che was there.
After a couple of days in Guate we were off to Pana to catch a boat to San Pedro.