Has anyone used the post office bank? I've had 2 people here in Vicenza recommend that I do this, one is a local and one is an expat. Would welcome any advice!

It's okay. Here's info:
http://www.poste.it/en/bancoposta/conti/

We have an account at the PB. Do a search, tho, because someone mentioned an account that's only for paying bills...no checks, no bancomat card, but the fees are considerably lower. Depending on what you want, this account might work for you, and if not, be sure to ask about different accounts/fees.

Fineco (the bank I use) has upped security with BP:

ie "Pagamenti su Poste.it
Per motivi di sicurezza, l'importo massimo per i pagamenti effettuati con carta di credito sul sito www.poste.it è di 149€. Non è previsto, invece, nessun tetto massimo per i pagamenti con carta ricaricabile."

Which isn't a good sign IMO.

Thank goodness it doesn't apply to Carte PostePay

I have a post office account. I just have a libretto for savings and there are no account keeping fees, however I have no bank card. My boyfriend however has all his accounts with the post office and he has an ATM card too, you pay less fees with the post office bank.