My friend and I spent 2 nights here during our tour of Ireland. The room was small but comfortable. We had a little bit of an issue finding the B&B, but after a few missed turns we figured it out. My suggestion would be to call Margaret (the owner) and have her help you. Breakfast each morning was tasty. The B&B is well situated just on the outskirts of town and is only about a 5 minute walk to the city center.
Kinsale is a fairly pricey little town to stay in so be prepared to spend a little more on dinner than what you would in other towns. We had a great time while visiting. The Kinsale Art Festival was going on and there were quite a number of things to see and do. The local Book Stor had a literary treasure hunt that was quite fun.