Ive started a new thread so that the subject is easier to find for anyone searching later on.
I bought my first phone from Future Next (they also have a very good computer room in the back if you want to check emails or surf the net etc.)
Here's a link to an interactive map:
http://www.paginegialle.it/pg/cgi/ma...380016663&cb=0
The next one I bought from Cinema (also known as Expert or S.ET) which is obliquely across the road from Bar La Playa, here's the link:
http://www.paginegialle.it/pg/cgi/ma...841003512&cb=0
Both of our phones are on the Wind network (stop sniggering!) as that is the best for our area (and the calls also seem cheaper than vodafone in any case).
There are a lot of other phone shops dotted about that we have no experience of but we like both of the above shops for their friendly, helpful service.
I had to wait a couple of hours for the phone to be activated after buying it - and you will need ID to buy a phone - codice fiscale or passport.
Another alternative is to bring an old handset with you and just pick up a sim card (as long as the handset isn't locked to a network). I have had no problem using the sim cards from our Italian phones in another handset.
Hope this helps, Lesley