Love the Algarve and have been a few times, never to Carveiro but would agree sounds nice.
Other places I would recommend,
-Alvor nice, medium sized town/resort, quite traditional,
-Olhos d'Agua (small resort, very handy location, nr Albufeira),
-Armacao de Pera nice, central, bit built up but great beach, very portugese resort.
Would avoid
-Albufeira (lager louts, resort nice for day trip but wouldn't want to stay there),
-Vilamoura (very fake, more couples/older tourist oriented)
- Praia da Rocha (clubby, although has fantastic beach, resort itself very built up) for families in August, very very busy.
Lagos great place but some areas seemed a bit rough.
Tavira lovely but probably for older families.
HTH