Welcome to the diving capital of the world.  If you're going to Utila, chances are you're looking to dive.  Just about everyone on the island is either on a diving vacation or just learning, as I was.  If that's the case, I would highly recommend the Utila Dive Center.  I got my certification there in the summer of 2006.  It's a party atmosphere, but not at the expense of safety.  Everybody there knows that diving is serious fun.  The instructors go out of their way to ensure the safety of their divers, and will not hesitate to tell you if they seriously think you are not ready for diving.  (That doesn't mean they're rude; it means they're concerned for your safety.)  With that, though, everyone there is out for a good time and there is music playing constantly out on the pier. If you dive with them, you'll probably want to stay at the Mango Inn, which is included with their certification courses.  I was backpacking when I visited and Mango was a rare bit of luxury after spending months in dingy hostels.  There's an outdoor pool on the grounds and it's open all night.  There's also a bar and restaurant.  It's not a five star resort, but unless you're looking for decoration, tv, and carpeted hallways, it might as well be.