I'm having problems posting so I'm apologizing in advance if this is posted twice.
After reading comments on fodors and reviews on trip adviser i"ve narrowed my search to the following three:
Villa Rosa
Albergo Calfornia
Hotel Buca di Bacco
All three have availability.
We are a family of 4 traveling to Positano in August.The kids are old enough to exlpore on their own and I'm looking for a location that will enable them to do so. PLease advise if I could go wrong with any these choices.

Our family of 4 (DH & I, 2 teen boys) stayed at Buca di Bacco August 2004. After 3 trips to Italy, this is our favorite hotel!! We loved the location, just above the beach which was great for the kids. The service is terrific and friendly too.

We had 2 rms (#10, 12) next to each other. We paid 360 Euro per night for rm 10 and 228 Euro for rm 12. Don't know your budget, but if Room 10 is available, jump on it. It was well worth the price. Large lovely bathroom w/ picture window above the tub, King bed, spacious room w/sitting area and the best part, the huge balcony (and I mean big-6 adults could easily relax comfortably)with the spectacular view right over the beach. Rm 12 was fine too, average size w/ twins beds, small balcony and comfortable size bathroom.

Oh and by the way, a great sleeping room too. Thanks to dbl pane windows, shutters, and good A/C, you could make the rooms dark, quiet and cold.

Both of the other hotels are mentioned frequently on this site too. You will love Positano. We all did and would go back in a heartbeat.

We loved the Albergo California which across the street from the Sirenuese, so the views are the same. It was next door to Villa Rosa with its killer stairs. The California does not have those stairs!

If you don't mind the killer stairs! Villa Rosa is a wonderful Hotel. Each room has a private terrace and breakast is served on the terrace each morning (I think they also have one or two apartments which might be good for the 4 of you).The staff are very pleasant and helpful. The Hotel is across from Sireneuse and about 5 or 6 minutes uphill from the beach. In August the cost was 150 Euros a night for a double room, which we tho

oops - sorry about that: that should continue thought very reasonable. I'll be happy to answer any specific questions on the Hotel.

We stayed at Villa Rosa last summer and the stairs were anything but killer, unless you are disabled. We went up and down them many times per day. It is a wonderful and charming hotel at a moderate price. We are going back in 7 months!!!!!

Another vote for the VR!

We stayed at the Buca de Bacco. Very nice, Just be aware that cars cannot approach this hotel. You'll have to get driven to the closest point and have a porter meet you or roll your luggage about the equivalent of 3-4 blocks (with some stairs, not bad). We took our luggage in and had a porter roll it out to meet out taxi upon our checkout. Rooms are clean, very nice. We had a room (#523)with a balcony overlooking the beach. The roof of the lower building was the only thing that marred the view. We took a boat to and from Capri, and to Amalfi and a bus back (nice, interesting ride). Pompei is about 1 hr away. Have a great time!

I know you wanted to stay in positano- but have you considered sorrento? easy enough to drive to any place along the amalfi coast- we jsut got back from an incredible stay at a bed and breakfast- mami camilla. It is also a cooking school. 50 euros anight, including fabulous breakfast. Dinner is optional, family style 4 course meal for 15 euros a person. Have an axtremely helpful concierge who will take you places. Was a true culinary delight, and very fun. Sorrento is also a fun town that your kids can explore and enjoy, also not nearly as expensive as positano. Also there is a local mozarella factory and olive oil factory that can be visited. Was loads of fun.. Just a thought!

I think all 3 of these hotels are very close to one another, at least VR and AC are. We stayed at AC and found the location to be very convienent to walk to the beach and stores. Our room was also quite large and some have private balconies. The hotel itself also has a large balcony and a common room for reading, card playing etc.

I stayed at the VR with 2 friends and had a triple room. Room was huge and would be perfect for parents and 2 children. Twin beds that make into a double in main bedroom, huge balcony overlooking the sea and 2 more beds in a sitting room off a little hallway in the room. the rooms were very clean and bright with beautiful tile. breakfast on the terrace overlooking the sea was enchanting! i would stay there again.