The house is in Marina de Praia, a former fishermen's village turned into a small, charming beach town. The photos don't do this place justice, as the house is better than the photos - it is beautiful, full of antiques, very personal and warm instead of a cookie cutter hotel. It is very spacious, there are 2 terraces, one with a view of the sea. The beds are comfortable and there is a gorgeous kitchen that I would love to have at home, (though we didn't cook at all). The pool is small but private, and great for a post-sea dip.
Marina de Praia ended up being a wonderful location: off the beaten track, not too touristy, only steps from the sea. It's a great place to swim, mostly with Italians, and you can easily get boat excursions to places as far as Capri, and to other nearby beaches. There are some great restaurants here, (we especially loved La Conchiglia and Donna Clelia, but there are also more pricey but romantic options just 20 yards farther). There is a very cool, historically famous nightclub in walking distance (for the younger, hipper set). This was a good location to get to Positano or Amalfi, about 20 minutes by SITA bus. The nearby town of Praiano is about a 25 minute walk (or a 10 minute ride on the local bus) and has a lovely Church (if you can come in the 1st week of August, there is a very special festival called the Luminaria, which is beautiful). Compared to the crowds of Amalfi or Positano, this was peaceful, and a great place to really get away from it all. We were able to reach the Sentiero Delgi Dei from Praiano (though there were about 400 steps to get to it from there).
It is important that you don't expect all the modern hotel-type conveniences. We did encounter some ants (not really a problem) and a lot of mosquitos (that weren't as bad as the ones I am used to in the US, but a bit annoying). The decor is certainly old-world with furniture that is meant for sitting, not lounging, but for us, that's what made it special. You have to supply your own soap, etc. There is no nearby shopping or markets (though there is one in town that will deliver if you want supplies or groceries). There is a separate charge for internet and electricity, but not too much relative to the total cost.
For those who wish to rent a car, I would not advise it. It is scary even riding a bus here, and you have to be an expert to manage the fast but winding roads. We found the buses a great alternative, even in peak season.