Terry's Studios are in a lovely, peaceful setting, well away from the road. They're situated up the hill from the main strip, just before St Gerasimo's cave.
We stayed there in July 2008 & found them very clean, with hot water whenever we needed it. The kitchenette was very adequate & even had a toaster. There was a great (silent) ceiling fan that we had on all night, so we didn't need the air-conditioning at all.
The walk down to the main strip was fairly short but steep. You could also walk further up the hill from the studios to The Olive Garden pool & bar. Our rep told us it was fine to use this pool or any of the others at the First Choice/Thomson accommodation in the area.
Our only slight disappointment was the layout of our room (no.7). We had the one at the bottom right of the photo. The door you see was the only one in/out & the people next door had to walk across our terrace to reach theirs. Immediately inside was the bathroom & kitchenette, which then opened out into the bed area. There was a shuttered window that gave a nice view up the hillside from the beds, but we were expecting the layout to be like the one on the First Choice website - with doors onto the terrace/balcony by the beds. Ours as it was felt a bit enclosed. However, once out on the terrace the views were fantastic & it was lovely to sit there of a morning and hear distant cockerels crowing up and down the hillside.
I would definitely go back to Terry's, but I would hope to have one of the other rooms with a more 'standard' layout.