Italy is great. There is a bridge 'of sorts' there, but generally you can not go on it, usually reserved. But otherwise it is great. In peak times, it can be crowded, as are any of the better viewing areas.
I think you can get a good view of Illuminations from almost anywhere since the World Showcase is a round circle and the fireworks happen in the center. Pretty much, all the fireworks looks similar to the 127 fireworks clips you can find here: http://www.mousevids.com/mv/cat.asp?c=fireworks&n=Fireworks&k=127&d=12*hours
If the bridge in Italy is open (sometimes they have private parties/weddings on the patio on the other side of the bridge) it is a great spot for viewing. Since I am a sailor I usually figure out where the wind is blowing and go upwind to watch. If you are directly downwind, you can really get smoked out. When picking a location, keep in mind that there are a few islands out in the lake that can get in your way.
we saw illuminations this past monday night (argh i'm so sad to be back here already) and we watched from Mexico by the bridge. but i must add, that i was a little disappointed with it. the last time i had seen it was in '92 and i don't remember much about it. but i was getting a little bored with the globe spinning around and around and around. my aunt has seen it a few times and she said that they have shortened it. But i thought it was ok, but probably not something i'd put on a "must do" list.
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