We used the Palataki (Greek Taverna) last year ( July2006) and it was second to none.
We stayed at the oscar appartments which is almost next door.
The staff are very friendly, the place is very clean and the food was excellent. Children were especially well catered for, our kids can be fusy when eating but they loved this place.
Going back 30th aug 2007 so will post fresh report when we return.