Does the Eurail pass include local trains in Italy, or only ones that go betw places like Naples and Rome...Rome and Ancona, etc.?

It includes all trains run by the state railway, Trenitalia.
Some independent lines are not included. The ones most likely to be used by tourists include the Circumvesuviana from Napoli to Pompei and Sorrento, and the Ferrovie Milano Nord from Milano to Como.
Fares on local trains in Italy, whichever operator runs them, are cheap.

Hi P,

Train travel in Italy is quite cheap.

You might not want a railpass.

Check prices at www.trenitalia.com/en/index.html

Most likely you do NOT want a Eurail pass for Italy unless you want to pay way more money than you should be paying.

Using a pass in other countries was easier than in Italy due to the fact that even with the pass, reservations are required on many Italian trains. If Italy is your only country,do NOT buy a pass.

Hi KG,

Reservations are required on all of the high-speed trains (ES*, TGV, etc), wherever you are.