I can highly recommend staying at Maria and Nino's place. It is located centrally in Palermo, in walking distance to every sightseeing spot. The rooms are bright, clean, colourful and friendly, with comfy beds and functional (small) bath rooms. The rooftop terrace is definitely the highlight, with great views over the entire city which can be enjoyed on the hollywood swing.

Unfortunately, I haven't met Nino, but Maria is a great host, always making you feel welcome and ensuring that you have everything you need. She can give you useful tips for a trip around Sicily.