We've had an offer to stay in Madrid as a holiday this summer. Is there much to do there to keep children (under 12) amused? I know it's a beautiful city, food, art, etc. but is it more of a weekend city break than a 2 week holiday?
Were you thinking of going for a full two weeks? It'll be very hot in the summer but having just returned from a hot (30c +) holiday with my two DC i'd say that kids are more than capable of coping.
There's a few good ideas for things to do with kids here and what we did on our recently holiday was spend the cooler mornings seeing the sites/museaums/galleries and the afternoons chilling by the pool. Maybe you could find a public pool or go to the Urban Beach?
There's also the walled town of Segovia that can be done as a daytrip.
I guess if you've got accomodation for a week there is less pressure for you to go out and do something every day.
I was there with DS (9) in October and we found lots to do for 5 days: zoo, museums, royal palace, hiring bicycles and riding along the Manzanares... However, in the summer it will be madly hot (37C or more) and generally quite an empty city, especially in August. I think you will spend most days just by the pool to avoid the heat.