Flying Saucer, great beer selection, one block away.
Pete's Piano Bar, really fun but you can drop a lot of money here, four blocks away.
The Library, yes just like the one in Dinkytown, four blocks away.
Frankie's, sports bar with lots of TVs, will likely be the A&M game watching HQ, four blocks away.
Best restaurants within two blocks are Reata, Riscky's, and Del Frisco.
Flying Saucer is a beer haven. They have an incredible selection of beer, the atmosphere is just about perfect, the "beer goddesses" really know the beers they carry, are super friendly and great to look at. They also have a great bar, super knowledgeable bartenders, a huge outdoor beer garden and great food. They have daily fire sale selections of craft beer for $3, Sunday all Texas pints are $3, and Monday most pints are $3.
The restaurants mentioned are some of my favorites, but I'd add the following:
Downtown Sundance Square
Del Frisco's Grille - same quality steaks as Del Frisco's, but less expensive and better non-steak selection, excellent cocktails, right on plaza
Taverna - Excellent Italian, Wed night 1/2 price wine, superb weekend brunch with 1.50 Bellini and Mimosa, I'm Sicilian and this is my favorite place in Sundance Square
Mi Cocina or Cantina Laredo - good Tex Mex
Daddy Jack's - excellent seafood
Piranha Sushi - good sushi, excellent happy hour prices
Razoo's - good cajun/creole, look for fresh redfish and crawfish specials
H2 Burgers - amazing burgers inside Red Goose Saloon
Paciugo Gelato and Caffe - Excellent gelato and espresso drinks, try an affogato
West 7th Area
Terra Mediterranean Grill - superb Lebanese, week day lunch buffet includes almost entire menu, get there early to avoid rush
Blue Sushi - good sushi, excellent happy hour prices
Movie Tavern - movies, plus decent food, good family fun
Magnolia Area
Cane Rosso - Real Neapolitan pizza, try it, it's just like in Naples and really good