I travelled to Itacaré, in Bahía, the north of Brasil for 4 nights in February 2006. I stayed in a very nice Pousada called SAGE POINT. I strongly suggest that you take with you the LONELY PLANET or other guide of the sort. Reading it in my pousada I realized it has very good information. If you speak spanish/portuguese, the quatro rodas guide is the best option.
You arrive by bus to the RODOVIARIA (bus terminal) and have to get a taxi to your hostel-hotel-pousada. If you have booked in the only youth hostel of YHI you can walk if you have a backpack, that is 7-10 minutes walk and people there will direct you. Otherwise I suggest to get a taxi, which is VERY expensive for the short distance. You can get the taxis that are outside the bus terminal without a problem,.
To downtown probable 10-15 Reales.
To our pousada, 20 Reales, which is 5 min. walk from downtown.
If you are short on money, the Youth Hostel seems to be a good option from people that have stayed there.
Otherwise I strongly recommend POUSADA SAGE POINT. A beautiful place on one of the beaches just outside downtown. Check their place on the net, it shows exactly what you get and the prices.
In Itacaré you should visit some of the nicest beaches:
PRAINHA: Get a 12-15 year old boy with a yellow t-shirt on the road that are "official" guides and will take you through the 30-40 min. trail of medium difficulty. Make yourself sure that they will stay until 5-6PM, otherwise they take off at 2PM.
They cost 20 Reales per couple. Everyone will try to rip you off but offer 20 and you will be accepted. It is a very nice beach, off the beaten track.
Also, try to get to the other "4 beaches", one of them called ITACAREZINHO and the other 3 I can´t remember now. To these beaches you go with a car (rented-taxi) to the starting of the "trilha" (trilha means path in portuguese) and from there you can reach the 4 beautiful beaches. It takes a full day (9 to 5).
The water is very warm, there are plenty of waves for surfing.
Also, there is a very nice "cachoeira" (waterfall) whose name I can´t recall but everyone knows it. You have to get here via a boat or a canoe...I STRONGLY suggest doing this canoeing trip. It is a wonderful experience through the RIO DAS CONTAS (Contas River) of 1,40 min with a beautiful silence (see pics below)
In summary, the best pousada was SAGE POINT, we stayed at the OMM room (or #3). The fact that is is a bit away from town does not bring any trouble.
If you have any questions, email me at -------
The city is quite small, the downtown is just 3-5 blocks with regional shops, restaurants and not much more