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Most of the good 'group' instruction that I've heard about is in Mexico. Lots of good stories from friends who were in Cuernavaca and San Miguel de Allende.
I don't know much about immersion in Spain, but I've heard that a lot of it is private if you're not in school anymore. Apparently some of the East Coast schools (Middlebury, Colgate, and Colby off the top of my head if memory serves me correctly) do summer programs out there...but I'm sorry to say I don't know how good they are or if they're open to people who aren't at school there.
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