Castlewood Guest house receives my highest recommendation. We loved having breakfast overlooking the bay each morning and it's close enough to walk into town. We enjoyed the friendly hosts, the whiirlpool baths and the comfy beds. We had the family room for the 4 of us and it was approx.180 euro per night-- which was a splurge for us.
Irisheyes, next to Castlewood is Heaton's Guesthouse, which we loved! From Heaton's it's a 10-minute walk into town on sidewalks, on flat ground. (You find yourself at one end of town. If you wanted to walk to the opposite end of town of course you would need to walk a few blocks further.)
Heaton's has a great breakfast. I think Castlewood is in the same family and I heard is great too but I never stayed there.