Don't know if I'm too late.. but I'd highly recommend Pappardella-- on the corner of West 75th and Columbus Avenue. The food is delicious.. and it's well within your budget. It's my favorite local place. It's a quick taxi ride too.

Thanks everyone for all your suggestions.
I am sure with all your help we will have a wonderful dinning experience.
Bruce

Excellent Italian:

Ballato's
55 E Houston St (Cross Street: Between Mott and Mulberry Streets)
New York, NY 10003
212 274-8881

here are some more:
Basso Est - lower east side
Gigino's - Tribeca
Lupa - Greenwich Village
Po - Greenwich Village
Palma - Greenwich Village (accross the street from Po)
Gene's - Greenwich Village (red sauce style)
Maurizio Trattoria - Greenwich Village
I Coppi - E. Village
Max - E. Village
Crispo - VIllage/Chelsea
Mezzogiorno - Soho
Basilica - midtown west
Piccolo - Gramercy area

Veniero's - for dessert (it's a bakery/cafe) - E. Village

I am also a big fan of Lavagna. Frank gets very crowded, and sometimes it hard to get into.

Check menupages to view menus/prices and read comments.

LOL! Let me restate:

There are some nice Italian delis in Little Italy where you could get a nice sandwich or snack and not spend a lot of money.

Dinner menus can be expensive and aren't very good.

Good Italian for a good price is Becco on Restaurant Row. $21.95 for the all you can eat three pasta chef's special.

Is that better?

GoTravel: Where are those nice Italian delis where you can pick up a sandwich in Little Italy? I can't think of any offhand since the Italian Food Center changed hands and began serving sushi...just curious if I am missing someplace...

This is probably too late for Bruce, but for anyone else with the same question avoid Puglia's.

ekscrunchy, I went by several a couple weeks ago while I was walking through SoHo from Houston down Mulberry Street.