The National Palace Museum (國立故宮博物院) has the world's largest collection of Chinese historical artifacts. The museum has undergone extensive renovations over the last few years and officially reopened in December 2006. While I think the renovations have improved the museum it is still lacking in interpretation and well developed chronological or thematic organisation. Still don't miss it if you visit Taipei. There are some exquisite works of art on display that make the price of admission well worth it.

There are free tours every day in English, Mandarin and Taiwanese. The tour guides can point out many interesting details and explain the historical background of the collection. The tour takes about two hours and is well worth it if you are pressed for time or just to get a better overview of the museum's collection. The English tours depart at 10:00am and 3:00pm daily. Audio guides in English, Japanese and Mandarin are also available for rent at the museum.

You can easily spend a full day at the museum. There is a tea house on the fourth floor which serves tea and yum cha and several other cafes and restaurants. The Silks Palace (故宮昌華) is a new restaurant operated by the Grand Formosa Regent Hotel. It offers a fine dining experience and dishes such as  "Jade Cabbage" and "Meat-shaped Stone" which imitate the items on display in the museum. Read more about it in this article from the Taiwan Review. 

There is also a gift shop at the museum which sells a wide range of books and souvenirs. 

The museum is located in Shilin. You can get there by taking the MRT to Shilin Station and then taking bus R30, 255, 304, Minibus 18, Minibus 19 or Culture Bus 101.