We had a great time in Mazzeo staying in Salvatore's apartment. The set up was perfect for our family of 4, very close to the beach and a short bus ride into Taormina town. I would recommend taking a bus or train from the airport (the train is less than an hour and very cheap) - we got caught by a very very expensive taxi on our way out.
Salvatore and his wife are great hosts. A beautiful spot and close to lots of action!