I went there a few months ago for a friends wedding. It is definately a third world country. In the main cities I found the people to be agressive with tourists, always trying to sell something.
Once you get into the country side people are very nice, and very polite.
I enjoyed it. Prices were good.
Where I stayed did not have internet, but it was very nice - great view. The name of it was La Catalina Inn - the website is
http://www.lacatalina.com