My wife and I will be in DC on may 19th staying in the heart of the City/downtown. Any recommendations on a moderately priced restaurant, preferrably Italian, or onethat is interesting or fun, in or near the downtown area (other than a chain rest.)

It is not moderately priced, but it is well worth it: Ristorante Tosca - superb Italian.
http://tinyurl.com/frgm2
http://www.washingtonian.com/dining/Profiles/tosca.html

Other votes: Les Halles (French), Jaleo (tapas), Clyde's (American; a chain, but a D.C. chain)

Bistrot Lafayette is very good, good French food.

http://www.eatsleepgo.com/DC.html

I lived in DC for @ 15 yrs (tho' I moved away 2.5 yrs ago), so I've eaten in many DC restaurants.

If you like Tuscan, try I Ricchi -- 1229 19th Street: http://www.iricchi.net/
http://tinyurl.com/e7eql

Supposedly expensive, but I thought it was reasonable the last time I ate there (a couple years ago).

For less expensive Tuscan, also walkable from your location, try Etrusco:

http://tinyurl.com/f6n7v

Another moderate Italian place nearby:
http://tinyurl.com/evge7

Or catch the Red Line (Metro) up to Bethesda (from Farragut North, @ 12 minutes/$2.10)& try this local, moderate trattoria: http://www.olazzo.com/menu.htm
http://tinyurl.com/gc7hu


I always enjoy Lauriol Plaza for very reasonably-priced Spanish & Mexican:
http://www.lauriolplaza.com/menuovensautee.html





The best meal I've ever had in DC, hands down, was at Nora (expensive but worth it):
http://www.noras.com/restnora/index.shtm
http://tinyurl.com/ef6zt

Mmmm, just thinking about these places makes me hungry!

I don't know what your definition of moderate is, but if these don't make it (DC restaurants can be pretty expensive), get on the Metro red line and go to San Marco restaurant at the Adams Morgan stop. It is excellent and definitely reasonable.

http://www.sanmarcodc.com/