There are two lounges at VCE. Previously, there were three, however one was amalgamated into the Marco Polo lounge, which is used by Austrian, Lufthansa, and Swiss among other carriers at the airport.
The other lounge is Skyteam (Alitalia)- it was rennovated in May 2011 and looks quite nice.
Note for those of you flying ex-Schengen- there is not a lounge after passport control- however of course this does not apply to any departures of OS/LH/LX. The lounge is on the level above where you clear security at departures. If you are eligible for Fast Track- which you will be if flying business on OS/LH/LX- head towards the escalator straight ahead, take it up one level, and turn left past the BOSE store. The lounge, as others have noted also accepts Priority Pass.
Customers who are *gold will be allowed one guest into the lounge. Business passengers are also welcome to use the lounge. If you check in at the airport (as opposed to online or through self checkin/telephone checkin) this will be explained to you at the airport checkin.
The bar is free, however not self-service. I find the staff to be both very professional and friendly. You have a good selection of non-alcoholic and alcoholic cold and hot drinks. The terrace is very pleasant on nice days, and overlooks the lagoon- if the weather is clear you will be able to see a great panorama over the city.
Regarding the internet- you can also pay to use it- or if you have Vodafone or Boingo login through those services as you prefer (also Skype login if you want).