Stayed at Villa Lipa in late May 2011. Apartment was very modern & clean. Excellent value for money. I stayed in Apartment #1 on my own and this was never an issue.
Leri, the owner, is very friendly & helpful indeed. She was able to provide a load of local tourist info, as well as recommending a local travel agency, Terra, for an all-in day trip to Plitvice Lakes, as well as booking another excursion to Kornati for me directly.
Location of Villa Lipa is slightly further from the old city than I expected. You can walk to the footbridge over to the old city in about 20 minutes if you go direct, or about half hour if you opt for the more scenic coastal route. That's at a leisurely pace.
Alternatively, walk as far as the 'Boatmen of Zadar' brown sign, follow the pier to the end & take the row boat across the harbour. The boatmen seem to work on tips only, so give as much as you feel. With this latter option you can get over to the old city in about 15 minutes total.
Tips:
Would recommend the Market shop Aleja about 5 minutes down the road towards Borik, rather than the one a few doors down. It's bigger, so has more choice and seemed a whole lot friendlier. It's three buildings on from Mamma Mia.
Pearl of Siam Thai restaurant, literally two buildings away, is excellent. As well as Thai cuisine you can get a Thai massage (before a meal I would expect!). They also have a small pool, right in the middle of the outside dining area, which was a *little* strange! Food, atmosphere, decor, service and value are all exceptional. One of the nicest restaurants that I've been to in some time.
Mamma Mia Italian restaurant is very close and does a nice pizza. There were also a fair choice of other Italian dishes.
I used Terra travel agency for a day trip to Plitvice, which I booked a few days earlier. Follow Put Dikla west for 10 - 15 minutes until the major crossroads, turn right & it's in the same building a the pharmacy (yellow & white building). Be warned: I was driven down to on of the larger hotels in Borik that caters for German tourists. There was an Australian couple, a few French people and some other nationalities, but the tour was definitely catered mor towards the German majority (which is what you would expect).
I would recommend investing in some mosquito repellent, as I woke up with about 5 new bites every morning.