@Shadow
I think the problem is that you're omitting the most important thing for it to work, which is visual correlation. You have to create "scenes" in your head which can provide intuitive correlation to key words linked to a concept you have to remember.
So you have to take an actual place you know well irl, identify some landmarks in that place and make up little scenes as above, taking place at those landmarks. The technique is not about the structure or the organization of the palace, it's about what happens in it.
The goal is always achieving that link between key words and the scenes you made up in your head within the place you chose. Then, when you need to remember, all you have to do is visualize your "palace" (the place with the scenes happening in it), which in turn will make you remember the key words through correlation, and remembering the key words will make you remember all the information linked to them.
I'll give you a practical example. When I was studying Man-Machine Interaction I had to memorize the 5 aspects that, according to one of its definitions, usability is composed of: learnability, efficiency, memorability, errors and satisfaction.
So to do that, I took my own bedroom as my "palace". Within it, I identified my desk a landmark: my desk with my PC on it. And then I made up a little scene, just simple imagery that also is capable to trigger emotions or some kind of response in you that makes it easy to make a link to the key words.
So I imagined myself as a kid at my desk, getting frustrated at Unreal Tournament cause it's my first PC game and I'm getting my ass kicked. Man it'll take some time to
learn this game. Then all of a sudden the game has a fatal
error and crashes. Upon checking the crash it turns out there's a problem with the system
memory. So I turn the computer off and get up, not
satisfied with my experience, but then my dad walks into the room and gifts me a more
efficient PC.
So there you go, whenever I have to remember what the 5 aspects of usability are, all I need to do is recall and quickly replay this scene in my head and the key words will automatically come to my mind. Sure as hell beat the old and trite method of just repeating jargon over and over in my head till it gets impressed in it. That only kinda works for the very short term, this works short AND long term. Because it's an active process that involves your imagination and creativity rather than a passive one, you're much more personally involved and that's key to remember things more effectively.