Also good for drinks: Crane Alley.
Awesome food: Bombay Indian food (massive naan and excellent curry dishes). Also good is Seven Saints in downtown Champaign. Unbelievable sliders (small sandwiches) and a huge liquor list (if that's your thing). Upscale Italian is available at Bacaro, it is really really good but should be limited to once a year if you are going to keep from going broke. If you like sushi, you can't beat a place called yellowfin on Neil street. It's a bit out of the way, but far and a way the best sushi you are going to get in central Illinois (although, this isn't saying a lot). I'm not a huge fan of Chinese food, but the campus is absolutely littered with them. Plenty of pizza places and endless sub shops (Jimmy Johns are everywhere). If you like Greek, Zorba's in campus town and Niro's gyros on Springfield ave in Urbana is awesome. Newest favorite restaurant in the area: Black Dog Brewery in downtown Urbana. Awesome brisket, pulled pork, and roast beef sandwiches plus some pretty good jalapeno corn bread and coleslaw. Also, if you are looking for a nice diner to get a sandwich, hamburger, shake, pie, or a phosphate, there is no better place than Currier Cafe. The owners of Currier Cafe also own a place called Silver Creek which is a little more upscale, but they have great American cuisine at a reasonable price.
There are lots of specialty grocery stores in the area too if you like to make your own food (The green onion, strawberry fields, world market). There are also some great places to get an EXCEPTIONAL selection of wine, spirits, and beer (The Corkscrew in downtown Urbana and friar tuck in savoy). Piccadilly's is your standard alcohol store, some with better selections than others, but they all carry the basics.
As far as entertainment, Krannert center for performing arts is exceptional for theatre, music, and other events. They do a weekly wine tasting on Thursdays, you should try it at the very least. As far as venues for music, there is plenty of places for local bands to play (the Red Herring, Cafe Paradiso, Canopy Club), but the University and star course do a good job bringing in some big names (Jay Z, Andrew Bird, Prince haha)
There is also an art theatre (http://www.thecuart.com/
), it recently changed ownership but it seems like they are still going to be putting on some good films.
If you have any other questions, shoot. I think I've eaten everywhere and have not found myself wanting. Life in the CU is pretty great, you just have to put in the effort to find all the gems of the area.