Palace player going too far in a large undergarment (8)
I believe the answer is:
alhambra
'palace' is the definition.
(palace in Spain)
'player going too far in a large undergarment' is the wordplay.
'player going too far' becomes 'ham' (an actor who overacts).
'in' is an insertion indicator.
'large' becomes 'L' (eg in clothes sizes).
'undergarment' becomes 'bra' (bra is a kind of undergarment).
'a'+'l'+'bra'='albra'
'ham' going within 'albra' is 'ALHAMBRA'.
(Other definitions for alhambra that I've seen before include "Famous Moorish palace near Granada in Spain" , "Great 14th century Moorish palace near Granada in Spain" .)