Smithman almost certainly came from the north which is to the right of the above picture and he may have gone in to the staff quarters before carrying on down to the Smiths. They were downhill exiting the photo to its left.
I hope you can understand me.
The photo below is taken from a spot where he had just passed the staff quarters. He met Peter Smith and co about 40 metres down the slope, somewhere near where you see the first tall building on the left
http://img18.imageshack.us/img18/9058/zvk9.jpg

The bottom photo is looking down Rua D'Escola towards the south and the sea.
I should add that at the bottom of the road, where the car and pale orange coloured house is that is Rua 25 Abril.
Aoifie was just to the left of that car when she saw Smithman, but at this stage of his walk he wouldn't have seen her or Martin Smith, because they hadn't arrived there yet. I wonder if Peter Smith was also out of view at this stage of Smithmans walk?
To go towards the church, Smithman had to turn left at the car (go east). To go towards the beach Smithman had to go straight on at the car, down a flight of steps (go south)
From things said in Aoifies statement, We have already ruled out the likelyhood of him turning right (west)