Lisbon airport is the city's main international gateway (Portugal's other international airports are at Porto and Faro). All overland connections are through Spain, of course. The two main rail crossings are at Vilar Formoso (the Paris to Lisbon line) and at Marvã-Beirã (the Madrid to Lisbon line). Buses remain the cheapest way to get to Portugal, but not by much. Prices for the alternatives are coming down fast, thanks to the growing attraction of rail passes (even over point-to-point tickets) and the rise of budget airline services.
Lisbon's antediluvian trams are more than just a way to get from A to B - they're an essential Lisbon experience. Similarly, the city's three funiculars are an indispensible part of its charm. There are also trains, a rapidly expanding underground system and buses, which run into the night. Stick to public transport - the manic traffic makes cars or bicycles a stressful option.