We stayed at Bed and Breakfast Medea in May 2010. We had 2 rooms as our daughter decided to come to Naples with us. Our room with a double bed was spotlessly clean and quite spacious - the bathroom while clean was very tiny and hot water was a bit of a hit and miss affair. Our daughter's room was small with an even tinier bathroom but again it was clean. Both rooms opened out to a large terrace where we would have breakfast. The terrace faces west so it gets the afternoon sun and can get pretty hot.
Breakfast is nothing special, you can have a pastry and either a coffee or a glass of orange juice. We solved that problem by buying a carton juice and keeping it in the fridge. In any case there are many cafes within a few minutes walk that serve great pastries and wonderful espresso.
The location of the B&B Medea is fantastic - right in the heart of Spaccanapoli. You can walk all over Naples from here and there's so much to see along Via Benedetto Croce. Even though there were crowds on the streets it was quiet in the room and the owners are very strict about guests being very quiet after 10:00pm. If others were on the terrace at night we didn't hear them at all.
The only thing I would caution people about is that there are about 5 flights of stairs to climb and no elevator - so if you have difficulty with stairs it's not the place for you. The hotel describes itself as 5 star luxury - it isn't - but it is a good budget priced place to stay.