Mercer Street Grill was very good but has closed since the owner lost a bidding war when the lease was up for renewal.
If you want more a more *funky* place to eat, try Citron on Queen St W. Good food, groovy decor, and you can go next door to the Gypsy Co-op for cocktails afterward.
I agree - DO NOT eat at the CN tower - the food is quite mediocre and overpriced. The view, however, is great on a clear afternoon.
[This message has been edited by Vaab (edited 03-05-2002).]