wallman, I highly suggest you look into the town of Sorrento. Naples is an exciting and amazing place, but I think you might be even happier staying in one of the more beautiful areas to the south. From sorrento it is just a quick jaunt to pompeii, naples, positano, ravello, amalfi, and the beautiful island of capri. I found that sorrento was the perfect hub for that area. It is so easy to get from town to town in that area with busses, a train, and boats available to quickly get you from place to place. I think it was a 25 minute boat ride from sorrento to Naples, and about the same time or less to get over to the magnificent island of capri or positano.
If you are interested in Sorrento let me know and I will look up the name of the hotel we stayed at. It was $300 a night for a room with a porch and an ocean view, and that view was stunning. The hoels in sorrento are mostly all clean and beautiful from what I saw.