I am a 2nd year student at Sydney University (Australia), which from 1997 radically changed its course into an integrative medical program with heavy reliance on PBL during the first 2 years.
Many people think that PBL-only schools replace lectures with PBL sessions, and that if you go to a PBL-only school, you'll be learning from fellow students instead of professors.
They couldn't be more wrong.
The way it is run in my school is that every week, we get a new clinical problem, which is grouped into 'blocks'. For example, we are currently doing an endocrinology/gastrointestinal block (11 weeks duration), and the problem of the week is a depressed, obese teenage girl who has been taking oral steroids for the last few years to control her asthma (it turns out she has Cushing's syndrome from chronic corticosteroid use).
We meet 3 times during the week to discuss first of all the initial hypotheses (1st session), then take a history (by asking the tutor who has the patient data sheet) and discuss how to do the physical exam and decide on the labs to order (2nd session). In the final session, we make a diagnosis and draw up a disease mechanism flowchart, then discuss management.
Throughout the week, we have lectures on endocrinology, pharmacology, biochem etc. For example this week, we had lectures on adrenal steroids, function of glucocorticoids, steroid biosynthesis etc. We also had anatomy sessions to study the endocrine glands, and a biochem session to learn about enzyme immunoassays (for corticosteroids).
In short, the PBL approach is a program that teaches medicine on a 'need to know basis'.
We don't learn about corticosteroids just because it is there and it's important. We learn about them because we need to know them to understand the week's problem. Of course we also expand our learning, so that even if the problem of the week is specifically about glucocorticoids, we also learn about other adrenal hormones and feedback control, their pharmacology etc. There are many overlaps between the PBL cases of the week, so that important ideas are emphasised over and over again.
After 2 years and 9 blocks later (cardiovascular, respiratory, haematology, neurology etc etc), we have covered everything that would have been covered in a lecture-based course. The difference is that we have learnt them in context of patient care.
I certainly enjoy the PBL approach used in my course, and can't think of any better way to study medicine.