where to stay on Lake Como? Varenna??

my Fiance and I will be traveling to Lake Como for a part of our honeymoon in march of '11. we have found a great place in varenna and before we put a deposit we wanted to get some info from the RS faithful... the house we have found is 30m to the water and very near the town center. we will be there for 5 nights and the price we have been quoted is 850 euros. is this a good way to go? or are there any other places that you might know of that we aren't finding? it will be in a low season so allot of small homes on the "lake front" are in our price range. I am struggling with putting all my faith in to a bunch of pictures may or may not be exactly "lake fron". also most of the homes on the lake we have found tend to be in a rural spot or in a smaller town and dont think we want to be to far out. I have heard fantastic things about Varenna, is there any other place that is maybe a bit off the beaten path that is better? right now if the plan sticks w/ the house we found we were thinking of renting a car only 2 or 3 of the days we are there, is this a good idea? is it even possible? I read some where that there is car rental in como for sure and maybe even in varenna. really and truelly I am 24 and I lived in southern italy a few years ago and traveled a bit with backpacks but a honeymoon is a whole new ball game. a little or a lot of guidance would be very helpful. my apologies for being a little drawn out.