Just returned from 3 nights at Capo la Gala and am already missing it! The location is stunning, and has to be seen in real life to believe, as the photos don't do it justice. Our Classic Room was perfect, and apparently the terraces are bigger than the more expensive rooms. One of the reviews below complains about noise from the road but we couldn't hear a thing from our room, or indeed anywhere else in the hotel. The door from the bedroom opens up to reveal uniterrupted views of the Med and surrounding bay, and the hustle and bustle of Sorrento seems a million miles away. The staff went out of their way to make our stay special, including sending down a comlementary bottle of Champagne for our wedding anniversary and recommending and booking restaurants, all of which lived up to expectations. We only dined one night at Maxi's which was a great experience, and dinner on the other nights at the nearby village of Vico was equally enjoyable - one night at Terra Mia (traditional Italian) and one at the Pizza a Metro (a pizza 'warehouse' with about 100 tables, full of chattering locals eating pizza by the metre or half metre - great value and great fun). Both evenings finished with a digestif in the local square before getting the free shuttle back to the peace and quiet of the hotel.
The Wellness centre is also worth a mention - very peaceful (and empty) and because we booked with Mr & Mrs Smith we each received a free half hour massage.
I'd thoroughly recommend Capo la Gala as a base to explore the Amalfi and Sorrentine peninsular, or if you're feeling less energetic simply to relax by the sea whilst being pampered.