We can definitely recommend Casa Pancrazia for a couple or a couple with one teenage or adult child. The apartment is beautifully furnished and comfortable but may not be suitable for small children. The description of the apartment on the website was 100% accurate.
Riccardo was a perfect host who picked us up from the bus station near Porta Messina by car, so that we did not have to walk through the beautiful pedestrianized Corso Umberto with our bags. This would only take about 15 minutes on foot but the Corso is packed with tourists most of the summer. The apartment in very close to the other end of the Corso, just outside the city walls and about 50 metres up the hill from Porta Catania. The apartment is on the first floor (no lift) and is quiet. A supermarket is just round the corner which is open all day.
Riccardo had a lot of information brochures and a city map and explained to us where things were. However, it is useful to visit the tourist information in Palazzo Corjava to find out about walking tours, concerts, trips etc. There are a number of travel agencies (SAT, Saistours) with offices on the Corso which offer various excursions to places of interest.
The cable car to the beach is near Porta Messina and the bus station.(3 Euro each way) The footpath to Spisone beach is too overgrown so we ended up going by bus instead.
It is a strenuous but rewarding walk up the hill to Madonna della Rocca and to Castelmola but the Saracen castle is closed for renovation until summer 2015.
There is an abundance of restaurants in Taormina but the menus tend to be quite similar. It is worthwhile to try the restaurants around the corner from the apartment in Via Apollo Arcageta which are very friendly and a little cheaper than the ones inside the city walls.