My wife and I were there over New Year's of 2006/2007 - we stayed in a great resort called La Brisas Del Mar - would highly recommend it. Very quaint, lots of room/amenities for the money.
The beach was small but not crowded, and the restaurants along the beach walkway were terrific.
We visited Ixtapa one evening but it's very Cancun/resort like. We much preferred the village-feel of Zihua.
We didn't see Andy Dufresne, but if you do - send him our regards.
Here's a picture with a view from our hotel balcony.
