We've been in the "Locanda Ruscello" 3 times: 2002, 2003, 2005. All the rooms we had were very spacious and lovely furnished. The buffet breakfast is very good (fresh fruits and cake, cappuchino, espresso on demand), in summer you can eat outside overlooking the lake.
It is a little walk to the city centre of Limone (5-10 minutes), the hotel is very quiet, almost all rooms have lake view. Very friendly and helpful staff. The hotel doesn't have an own swimming pool but one can use the pool of the nearby hotel "Villa Romantica".
The "Locanda Ruscello" is really worth a stay...