With rose-marbled walls, crystal chandeliers, gold ornamentation and huge mirrors, the Palace Theatre has the looks and atmosphere of a French palace. Indeed, the theater?which originally opened in 1926 as a vaudevillian showcase and later became a movie theater?was modeled after Versailles. Located next door to the Hotel Allegro (formerly the Bismarck Hotel), the Palace Theatre is part of the development of a revived Randolph Street theater district and is just a few blocks away from the Ford Center for the Performing Arts, Oriental Theatre. The 2,300-seat theater, with orchestra, dress circle and balcony, has been renovated at a cost of $20 million. The stage and backstage areas have been expanded; new dressing rooms have been added and state-of-the-art stage equipment has been installed. Lobby, washrooms and box office have been modernized.