You need to go to Alfama in Lisboa, or Alfandega in Oporto these days Joe, to hear fado. There is also a style of fado that comes from Coimbra, like this one Don't quote me on the origin of this fado, but I seem to remmeber being told it came from Coimbra, when I lived in Lisboa for a short time.
There are lots of other song styles from Portugal, I can reccommend a group called Terra a Terra, who sing wonderful harmonies.
Fatima is all about religion, and not a place I would expect to find much secular music.