I didn't eat at the restaurant but I did attend the Nightclub.  We waited outside of the restaurant on the lower level outside, they had velvet ropes designated to \"Palazzo Hotel Guests (free), General Admission, and VIP.\"  Luckily we got there early enough (10:45) and we got in just fine.  Right as you enter you walk up a large flight of stairs and through a hallway with running sinks on both sides of  you, then another flight of stairs which leads to the actual nightclub.  As you enter, the full bar is directly in front of you with VIP tables surrounding it, and to the right is the dance floor, and more VIP tables.  The ambiance of LAVO was amazing.  Nice and dark, and the DJ (DJ Vice) is the best Vegas has to offer especially on Sunday Nights! Drinks are cliche Vegas Nightclub prices ($10 per shot/beer, $15 per mixed drink), which wasn't a problem because they were all pretty strong.  Overall excellent experience, and although the Nightclub is quite small, it has one of the best DJs in Vegas and an affluent clientele.