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Most people, when they think of the Christians in Ancient Rome, often think
of the gladiator arena where the Christians are feed to the Lions . . .
in truth, the Romans were actually nicer to the Christians than
that . . . (most of the time)
Misunderstandings
Christianity was very much misunderstood by the Romans. It was
among many religions that came to Rome during the Early Empire along with
Mithras and the Cult of Isis. 
To the Romans, the Christians were just another cult. What the Romans couldn't understand was the monotheistic nature of Christianity. The Romans believed that all the gods coexisted, and thus found the exclusivity of Christianity unappealing.
To add to the confusion, the Romans thought that the Christians practiced cannibalism (eating the body and drinking the
blood of Christ) and incest (calling everyone brother and sister).
On top of that the Christians worships someone who was crucified.
Crucification in Ancient Rome was reserved for criminals only, and thus,
the Romans thought the Christians worshipped a criminal. In fact
the early Christians themselves often identified themselves with the Chi-ro
(a P through a X, the Greek characters for the first two characters of
Christ), instead of the cross.
Christians vs Jews
The reason the Christianity was persecuted more than the Jews was that
the Jewish religion was old, and the Romans really respected anything that
was old. Christianity on the other hand became new when it split
from the Jewish religion. Also, the Jews had agreed to pray for the
health of the Emperor.
Persecution
The first time Christianity was persecuted was by Nero who blamed them
for the fire that burnt down most of Rome. The reason for this was
that the Romans thought the Christians prayed for the end of the world
by fire (the images of judgment day).
Through out the Roman Empire, Christians were occasionally persecuted depending on the policies of the Emperor. Most of the time however, they were tolerated. And contrary to popular belief, the Christians weren't just the poor and the foreigners, in fact many Romans turned to Christianity. Pliny once wrote to the Emperor Trajan on how to deal with Christians, to which the Emperor replied that Pliny should avoid a witch hunt at all costs.
A Few Reasons for Success
One of the most powerful tools of Christianity was its martyrs.
The stories of the martyrs being eaten alive by lions were probably true.
This made a powerful emotional impact on all that watched.
The strength of belief that would led someone to die for their faith was
powerful enough to convert many Roman citizens.
Another advantage of Christianity was that it did not require its practitioners to be circumcised unlike the Jewish religion. This was probably more appealing to adult males . . .
The turning point of Christianity was when the Emperor Constantine came
to power under the sign of the Christian God. His Edict of Milan
promoted the tolerance of all religions . . . moving Christianity from
the age of martyrs to the age of bishops . . .