were thinking of staying at the iberostar and are wondering how nice the hotel is ? also has anyone used there dive shop for an excursion and was it ok?

The Iberostar is a great place ! I would strongly recommend though that you book your diving with someone else. Dressel is expensive and doesn't have the best reputation. If you want more details, e-mail me and I send you a link to the world's greatest travelpage about Mexico, lots of trip reports and pictures , also about the Iberostar.