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Ischia most popular neighborhoods are Ischia Port, Ischia Ponte and Forio.
Ischia Ponte is the site for the city's main historical attraction, the Castello Aragonese. You will find some upscale stores and nice cafes and bars. The beaches are small but enjoyable. The neighborhood is great if you are going with kids as it is not as intense as Forio of Ischia Porto.
Forio is a lively town with great restaurants and bars. The restaurants will deligt you with the great food, guaranteed! Walk along Via Marina, Via Bocca, Via Citara and make your pick. You can reallly enjoy the beach that takes a long portion of the coast on both sides of the town. From there you can go to Saint Angelo that is in the southern bottom of the island.
Ischia Porto is by the harbour; expect a lot of traffic and a much hectic rhythm specially when a cruise or a ferry docks at the port. There are plenty of restaurants and bars mainly on Via Roma, Via Mazzela and Via Colonna. Be prepared to enjoy some great Italian dishes (Linguini con Scampi, al Coccio, Zuppa di Pesce, Spaghetti alle Vongole, and some great cheese: provolone, camembert, formaggio) at the restaurants along Via Roma,Via Porto, Via Campagnano and Via Cartaromana.
Other towns that you can visit (and you can do it by bus) are Lacco Ameno, Barano d'Ischia, Serrara Fontana and Casamicciola.