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Positano location question

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I will be spending a week in Positano at the end of June next year with some girlfriends (5 of us total) and I am starting to look for an apartment or villa to rent. My main issue (other than the horrid exchange rate) is what is a good location in Positano? There are a couple of houses that fit our criteria, but they are WAY up high and I am thinking that it would be difficult to get around town (we won't have a car) and to the beach. There are a couple of other villas that state they are in the Fornillo section of Positano. Would that also require a long walk to get to the "action"?

On the off-chance someone has a suggestion, we are looking for a 3 bedroom with air-conditioning, a large terrace where we can lay in the sun (if we don't feel like paying for a chair on the beach) and plenty of room inside for us to lounge around and cook big dinners!

All advice and comments are appreciated!

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