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Tom,
I live in this neighborhood, and I wish I could say good things about Monaco, but the food is substandard, IMO. I've been there three or four times and never had a memorable dish, although the space is nice and it is certainly bearable. If there is a good Italian restaurant in the 80s on Broadway or Amsterdam, I don't know about it.
Dave
P.S. I CAN recommend two restaurants within a block of Monaco -- Cafe Con Leche (Cuban) and Luzia's (Portuguese). Haru (Japanese) and even Sarabeth's, also within a block, are also better options.
