Hey kiwibro,
Thats exactly the beach that I worked at in summer '06 and '07... Plakawatersports is the place to go... wicked gear, great people with good advice... Ask them for the famous 'Michael Powell' (me) and they should laugh their asses off... Its a father/son business... Kostas is the older and Stef is the younger rock at the station... both great guys!
Plaka is the most beautiful beach on Naxos, in my opinion... The water is crystal clear! Great sailing spot... The wind is side-off shore which makes it perfect for beginners close to the beach and great for more experienced who want to go out to find more wind.... When the wind picks up it DEFINATELY picks up as the winds funnel thru the channel between the west coast of Naxos and the east coast Paros... Lots of fun...
There is also a cheap camping place 200m from the station called maragas camping... Its right on the beach and Its quite cheap but make sure you book early to secure a spot...
anyway check out
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plaka-watersports.com/ for the windsurfing station
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www.maragascamping.gr/ for cheap quality camping
hope that helps
Michael