We stayed with Ula (owner of Casa Serena) and her family in the beginning of May 2009. It was a beautiful time to be there as the weather was perfect. Ula was incredibly hospitable, friendly, warm and helpful. On our first night there, Ula drove my mother, my 2 kids and I into town because we didn't know our way around yet. Plus, she made dinner for my husband that night because he was too exhausted from driving all day to come into town with us.
The next day, after a lavish gourmet breakfast of fresh bread, warm cake fresh out of the oven, assorted meats and cheeses, yogurts, cereals and eggs (however you wanted them prepared), Ula took my mom and kids to the playground nearby while my husband and I took an all-day hike.
We rented two rooms which were very clean, each with their own private bathrooms. Each had tv's, bottled water and little chocolates! She had a little wooden crib for my 2-year old to sleep in. A billiard table, reading nook, toys and an outside pool were available to use. Free wireless internet also available!
One thing to note is that she takes cash (swiss francs and euros), possibly traveller's cheques, but no credit card.
This was the best experience I've had traveling with my two little kids. I would highly recommend staying there as it is affordable, 5 min away from the train station (then a short ride to downtown Lugano), very clean, kid-friendly, and she makes a great breakfast!