I highly recommend Barbara's place La Bergerie. Clean, comfortable and Barbara is very welcoming and easy.
Access to Isola Bella is close but lots of steps down which means lots of steps up! The cafè at the bottom of the steps before you go down to Isola Bella is excellent. Access to town is also a walk up but we really enjoyed a bit of excercise to balance the delicious gelati. Of course also easy to get a taxi. Taormina is such a lovely place - make sure you go to the enchanting botanic gardens. Grazie Barbara :)