Update (4/14/2010): The Colonie Blue Spice restaurant has reopened in the former Garcia's on Central Avenue, just across from their old location.
We've gone to The Blue Spice a few times now and we like it. Since it's close to our office, lunch is becoming a somewhat regular experience.
I have to say it's pretty good, maybe the best Thai food in the Albany area. We have been going to Arirang, which has Korean, Japanese and Thai. We'll still go there, but maybe save the Thai for the Blue Spice.
For lunch, my favorite dish has been the Chicken Panang Curry. Lunch comes with a Tofu Noodle soup that is simple and of good quality. My wife has been getting the "Bluefinger Chicken", which has a peanut sauce. She likes it. I don't like the peanut sauce myself.
For dinner, they have a "house creation" called Blue Mango Curry. It's very good - in addition to a typical Thai red curry it includes fresh mango and some other touches. One time we had dinner there with friends and both of us enjoyed this dish. I've also had their Chicken Tom Kha soup (aka Tom Kha Gai - flavored with coconut milk and ginger) and it is spot-on - a lot of Thai places don't get the flavor or consistency right.
Appetizers are also good - we usually get the dumplings - and the staff is friendly. The menu has a broad array of selections, for both lunch and dinner. Last I checked they were not serving alcohol. Our friends brought their own bottle of wine and the restaurant will supply the glassware.
Parking can be difficult if the restaurant is crowded. Their lot is small. But the former Warren Tire, soon to reopen as a collision repair shop, is next door and its lot has a lot of room. That place has a big sign that says H & V.
Update: Just had another dish here that I loved - Ga Pow Gai. It's "ground chicken" in a somewhat spicy sauce over rice. There were red peppers and I'm pretty sure it had coconut milk in the sauce. The chicken isn't really "ground chicken", if that's supposed to be like ground beef. It had small chunks of chicken. Great flavor in this dish. I'll definitely have it again. Might be only on the lunch menu, but I bet you can ask for it at dinner time.