I am a member of Club Mahindra and I stayed there with my wife and daughter for five days in Feb 2007. The service was top class and the employees were extremely courteous and attended to every need of ours. The facilities available, whether it was the pool or games or the library or the water sports on the beach were also excellent.
Of restaurants at Club Mahindra we particularly liked Dune Shack where we got to eat some great sea food and there are bards who strum your favorite numbers. But food otherwise( room service and other restaurants) was not really up to the mark.
I think Club Mahindra’s location makes it an ideal place for you to stay if you are planning to explore South Goa from there. There are some good eating places closeby, like Fipleys in Benaulim and Joecons next to Taj exotica where you could go eating out. You are also pretty close to both Benaulim and Colva Beach. Mobor and Palolem are also not faraway.