coolness
I've been to Venice, and this sounds like a very cool idea.
my suggestions:
Venice is mostly (nearly entirely) urban. Very few open spaces, except around canals (poof, idea). Canals should be a mix of ones lined by sidewalks and ones that just have buildings running up to them. Furthermore there should be a gap of about a foot between the water level and the street. What else what else...the colors! The colors of the walls of the buildings are kinda off. It's not like NY with water. It's that wierd spanish, red brown. Like terrecotta, but more brown. Also, don't use those square windows. Windows are spaced a little more infrequently, and the square ones make them look like office buildings next to water.
have a mac...
...but not a clue?
http://www.freeyellow.com/members8/thornz/
"e phallous maos e magnu est"
-the dirty monk