Madnezz, I've lived in Guelph my whole life and let me tell you, the Palace is definetly not the place to be. It's like highschool, in club form.
If you're in town on Thursday, check out Jimmy Jazz for some live hip hop ya don't stop hosted by DMS, or the Third Floor of Van Goghs for some house/techno kinda thing. Jimmy Jazz is the most layed back bar in Guelph, and a personal favorite. It has a heated patio where it gets pretty wild sometimes, a common sport involves racing someone around the patio, only stepping on chairs though, like the floor is hot lava!. This often leads to someone eventually wiping out really badly, always fun.
I'm not sure what's going on this weekend specifically, but sometimes there's a jam happening at the Black Mustard on Wyndom St. on Saturday, deep Jazzy house / Click house / D n B / etc. If there's something going on there, check that out.
Other places of interest might be the e-bar above the bookself on Quebec (kinda quiet, 20 something bar, can be pretentious at times though), or van goghs in general is pretty happening most of the time. Molly Blooms is alright, it's farther north up Wyndom, may want to check that out. The Penny Whistle is at the corner of Norfolk and Quebec and is generally an old mans bar, but the beer selection is one of the best in the city. The Albion is at the corner of Macdonell and Norfolk is seen as a dirty dank bar, which it is. BUT, the clientelle is pretty layed back. Lastly Doogie's/Pablo's just beside the eaton center can get pretty happening too, aimed at mid 20 yr olds.
Now if you're looking for something economic, Boo Radleys is the only place, I think it's like 1.50 for whatever you want, but it has the most horrible location known to man kind. Good if you're looking to get drunk cheap or if hanging out by the auto repair strip is your thing.
Or you could maybe catch me staggering through downtown for you own amusment. The thing with Guelph is that it can actually be a very fun city, if you know where to look.
p.s. If you're in town friday afternoon or what ever, check Baseline/Mudshark (both in the same store) on Wyndom to check out what's up as far as events go...if there are any.
phew!