Sicily

We stayed in Montreale....check the web for hotels in your price range. Palermo is a big, dirty city. For the best experience...see if you can hire a guide to get you around on a walking tour of the old city.

Are you traveling the entire island, or just the west side?

On the west I highly recommend Segesta and Erice..going south see Selinunte. The middle of the island is empty. Really small towns, nothing inbetween. Most of the sites are along the coast.

Stop in Trapani to see the sea salt harvesting.

Eyewitness books have a great book on Sicily to help you plan.

To the south, the city of Agrigento with its Greek temples is spectacular. Siracusa on the east coast has both Greek and Roman ruins. In the middle of the island is the small town of Piazza Armerina and near there is the Villa Casale, an ancient Roman villa with fantastic mosaics. You'll need a car, but the highways are excellent and well-marked.

Taormina (just north of Catania on the East coast) is spectacular.

Check this site ( http://www.bestofsicily.com/sights.htm ) for sights to see in Sicily.
Also for hikes try Mt Etna, if you like archeology try the Pantálica Gorge near Siracusa or Morgantina near Enna.
Sicily is a fantastic place and a huge number of things to see without the tourists and crowds.
Have Fun,
Jesse