My favorites in that area for Italian are Remi (53rd), Orso (46th) and Esca (new, hot, and almost entirely fish) (43rd & 9th), but they are all on the higher side of moderate. You might want to try Vice Versa, which is a bit more moderate and pretty good (I think it's on 46th). Julian's (53rd and 9th) is probably more Med than Italian, but does have calamari and pastas, and it's a pretty space, and moderately priced. There are several new restaurants that have opened in the area with some buzz, but none of them has thrilled my palate. I have to say I don't like Sardi's.