Real or fake? Talking scene setting!

At the moment in my writing world I am away on an island with hot bodyguard Nathan Regan and pop princess Autumn Raine. Their island is real - it exists - and I wanted to blog today about what you think about scene setting. Do you prefer full-on reality, partial reality or total fiction when it comes to places? I love a bit of both myself and I think it very much depends on your novel and your characters. I've set characters in real places in some of my books and fictional ones in others...