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Need help planning: One month backpacking Europe

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Hey, everyone. Earlier this year I planned on going to Italy but decided on Mexico instead. So, for 2013 I'm going backpacking for one month in Europe. I honestly have no idea what I am doing when it comes to planning a backpacking trip, and that's where I need you guys to help me! Here are my current plans:

Backpack starting around the middle or end of May
Amalfi Coast

I'm thinking I would do about 3 days in each place. i'm actually not sure if I should include Italy in this trip, or if it deserves a trip of its own :) If I do decide against Italy, I'll probably replace it with Barcelona and France.

Also, given I would be staying in hostels mostly, would a budget of $5,000 be sufficient?

Thanks in advance for any tips and advice

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