Look for Mikey Saleri in the alley behind Emilio's Butcher Shop in Little Italy. Saleri has been trying to intimidate Corleone shopkeepers, and he has threatened to kill Emilio the Butcher if he doesn't pay the Tattaglias. Take out Saleri quickly and quietly - use your fists, if possible.
Reward: $500 +500 Respect
Bonus Condition: Use hand-to-hand combat
Bonus Reward: $2,500 +2,500 Respect
To complete this hit, simply go to the end of the alley behind Emilio's Butcher Shop. There you will find Saleri beating up on Emilio. Run up to him, grab him, and pound him with your fists until he's dead to complete the hit along with the bonus condition.