Okay, my husband and I just returned from Sorrento. We stayed at Residence Le Terrazze and couldn't have chosen a better place. For 70 euro a night we received a large double room full of color and views of the sea on our private balcony that would take your breathe away. The staff was extremely friendly and helpful on any questions we had. The breakfast was also good. The only downside was the water pressure wasn't as good as it could have been, but who cares, your in Italy. I would defintely stay there again!
Note: I would highly suggest going to Paestum! The temples are simply amazing. We rented a car and made the terrifying drive on the Italian Autostrade and got there in about an hour. if you go by train, I believe it would take about 2 hours.
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