Palacio Bar

Palacio Bar (popularly referred to as Palacio's) is among the best of the dive bars I've been to.  It's comfortable, plenty of room and there's often music (corridos, mostly, I think) and dancing on weekends.  It's walking distance to Mesilla Plaza and a few restaurants.

The crowd that frequents Palacio's is mostly working folks -- not students.  Patrons seem to fall in age between 35-ish to 55-60-ish.  I've seen a good-sized crowd of bikers there on weekends before.  

My co-worker says they make a mean michelada.