Hi, if you're looking for a good Italian language school in Italy, then I strongly recommend Babilonia at Taormina, Sicily.
In the past ten years I've been to three language schools in Italy. The last was Babilonia, and it remains number one on my list. I had never heard of Taormina before last year, so I had some hesitation about going there. I decided to take a chance, and took a B-level course in September and October of 2008. It was a wonderful experience that I'll never forget, and I will return.
Taormina is beautiful. It's also remarkably safe. The Babilonia staff is extremely helpful and friendly. They will go the extra mile to make you comfortable. In general I find Sicilians are tougher on the outside, but softer on the inside than most Italians. They are warm people. In Taormina there are gorgeous panoramas, nice beaches, and an active volcano. What more can you ask for?
Of course nothing is perfect. Here are my negative impressions. Taormina can be expensive, although there are ways around this if you're staying long-term. It's a tourist town, so expect to pay high euro for nice clothes, etc. Taormina is an extra flight from Rome to Catania, if you're coming from outside Europe.
It's hard to say anything bad about the place. The people, the culture, the food, the local wine, the history, it's all in Taormina. Check out Babilonia!