We spent a week in Safed (in the center of the city) in August of 07. We needed internet access. We spent hours looking and asking for internet cafes and they were either closed or "temporarily broken" or we could not find them. The next day we realized we had walked right by one - it's housed in a little candy store at the foot of the midrahov (just past where the street goes under a bridge). The proprietor was very nice. He seems to open late (somewhere between 11:00 AM and 2:00 PM) and close late (usually after midnight). He also rents rooms. We were staying elesewhere but did look at his rooms for the future, and they were OK.