I loved staying at Kastellos. Very cosy and quiet - different to the buzz around Crete's bigger towns. This place works great if you are planning on a long, quiet stay.
Transport: when hiring a car, probably opt for a small one. Roads to get to Kastellos are quite narrow. You will also park on the street, so probably best to bear this in mind.
Food: Maria's Taverna was definitively the best place I tried in the whole Crete! and it is right next to Leonidas, I would strongly recommend it!