Yep - there's a risk of the "dicky tummy" wherever you go, but on about 20 visits to Cyprus I've never been ill once (with the exception of an over indulgence in brandy sours). Cypriot food is fresh, healthy, and delicious. Ignore the scaremongerers - you'll be fine (the time share touts are a pain though - do NOT get chatting with anyone offering you scratchcards etc - just a firm no thank you and keep walking).
Richie