HuskyPup - 8:15 pm on Aug 26, 2010 (gmt 0)
Canary Islands - I actually went there some 20+ years ago with the idea of moving there however they really are not that big if you fancy travelling about a bit plus they're several hours flight from mainland Europe.
Other islands maybe worth considering and are beautiful with excellent food...Sardinia and Corsica, however I'm not sure what their broadband speeds are right now.
You could probably buy a Greek island fairly cheaply at the moment! I know lots people who like living in Malta and it should tick most of your requirements...I think.