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Sicily car rental: pickup, drop off, and size

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I'm looking to rent a car in Sicily for our upcoming trip in May. I plan to rent through AutoEurope, picking up in Ortygia/Syracusa after 3 nights there. We will be ending our trip in Palermo, but our previous stop will be Erice. I have a few questions and I'd appreciate your suggestions:

1) In Ortygia/Syracusa, which office location is best to pick the car up? We'll be staying in Ortygia and leaving to go to Modica from there.
2) Am I better dropping the car in Trapani and taking a bus to Palermo? I like the idea of avoiding driving anywhere near Palermo and arriving by bus sounds more relaxing. If yes, where do we drop the car? If you recommend we drop off the car in Palermo, what office/location do we want to drop the car?
3) What size do you recommend? I know we want a small car but one large enough to hide the luggage in the back. What is the best size for both safety (driving through narrow streets! and hiding luggage).

Thanks all! Appreciate any recommendations you have!
Paule

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