I've just started mingling in the Berlin startup scene:

There's a lot of copying of the American tech market, retargeted towards a German market. That makes some investors here a bit conservative since "the proven model" is so unambitious. But there are VCs and Angels here in town and quite a few startups. Living is freakishly cheap for a European metropolis and in general it's a very attractive place to live.

Here's a map of startups registered on Deutsche Startups:

http://www.deutsche-startups.de/2007/11/29/berlin-ist-die-st...

YC user 'wheels' is there - ask him (he's often on #startups, too).

Insanely cheap (nice meal out = 5 Euros), loads of alternative stuff: squats, parties, gigs etc. Very young, very friendly. Not sure about the start-up scene.