Hi Debbie,
I had heard of the Papagayo before (lots of Canadian travel outfits book there) but I only looked up the location in response to your query. I must say it's a very convenient spot! I cannot say anything about the birding in the immediate vicinity, but I see from the map that it is close to two areas I have visited (in Feb. 2010), Santa Rosa N.P. and Rincon de la Vieja. I highly recommend both.
Santa Rosa has extensive areas of good Guanacaste lowland dry forest, and so you’re more likely to see the specialist birds of that habitat there than elsewhere. (In our case, it was things like Thicket Tinamou and Lesser Ground-cuckoo; there’s a lot more there than that, but we only had one morning.) It also features a number of well-established trails, which you might not find elsewhere.
Rincon, on the other hand, is up in the foothills of the Cordillera de Guanacaste, and the climate is quite different – even on the leeward side of the mountains we got “misted” on quite a bit. The forest is lush and green, and the bird life correspondingly different. We found it really tough birding compared to the coast, but rewarding; several warbler species (including one lifer), Long-tailed Manakins at a lek, and Yellow-eared Toucanet.
By the way, we could tell that La Rincon de la Vieja must be within easy reach of the coast, because great scads of wristband-toting people – positive busloads of them! – started showed up at about 11 o’clock in the morning. Judging by overheard chatter, I would gather that most of them were Canadian and American tourist. So, if you aren’t willing to rent a car there, get a private driver, and get yourself there at about 8:00!
(Sorry, can’t help on the guide front – in CR, I find, all one really has to do is find a good site, and show up…)
Whatever you do, I think you can count on having a great time, wish it were me (and Herself, of course) going again!
Peter