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first holidays in Italy

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Hello,
I've decided not to go to any travel agency, I want to plan this holidays by myself but I need your help.
My destination is Italy, but I don't know which town I should choose. I'm amazed by photos of Positano, Bari or Sorrento, but I'm open to offers.
I dream about stay in charming city with many small restaurants and nice, small shops.
I want to spend time doing shoping, sunbathing and eating Italian food.

Date: August/September

I would be also grateful for any suggestion of accommodation. I do not have enough money for hotel. I'm going to spend 500-600 € (for 2 people, 5-6 nights). Maybe you know any nice, clean hostels or sth?

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