Still searching for apartment in Venice with outside eating space and full kitchen. I found two that look great on Giudecca that fit the budget. The last comment on this forum regarding this location was in 2006 and before that 2003. Has anyone stayed over there recently and have an opinion? We will be there six nights. It certainly gives you more for your money as far as accomodations - but is it worth it???

We stayed in Giudecca (Hotel Giudecca***nice but small rooms) for a week in Feb. We enjoyed it - but if you are going to save money be sure to calculate in the cost of the Vaporetti pass (I think we got a 3 day pass for 30 E per person, they have a website to determine cost). If you have a kitchen even better as Venice we found to be expensive. Our room was great with a large terrace that overlooked the canal. Giudecca is quiet and felt very local. I thought the restaurants on the island were just ok. We actually had better food on the main island. We have a daughter and she loved the boat. Plus there was a park just behind our hotel. Giudecca was quite convenient only a 10 minute ride to St. Marks. Quite often we took the boat straight across from Palance and ended up winding our way to the grand canal. For us it was nice to be off the beaten track - but it is not for everyone. If you have more specific questions let me know.

Yes, to go just about anywhere, you will need to take a vaporetto, so a pass is a must. I can't imagine staying on the Giudecca and not riding a vaporetto at least twice a day. For a six-day visit, you'll need a 7-day card, which right now costs €50.

Are there markets there to get food to cook in the apartment or would we have to carry it over from the city (Rialto market?

I don't think there's a market on Giudecca, but on the Zatterre, directly facing the Giudecca (one vaporetto stop away) is a large supermarket--at least large for Venice.

There must be food shops because it is a residential area; take a look at this review that mentions two supermarkets on Giudecca:

http://www.slowtrav.com/italy/vr/review.asp?n=942

I don't think I would enjoy staying on Giudecca as much as staying in Venice.

Two things to share-

1. Buy your 7 day Vaporetto card at least 15 days in advance and you will save $. Book through-

http://www.veniceconnected.com/

2. The Hilton Hotel on Giudecca has a little known sky bar where you can enjoy the best sunset view of Venice.

I should also mention that this was not our first time to venice. I think Guidecca is not as magical as the main island. If you stayed on Guidecca I do think that you would not spend alot of time there.. I didn't see an open air market but there are supermarkets.