I just made a post about this restaurant to the tiki drinks thread.
By all means go, but do get a reservation, especially at weekends, and try to sound out whoever you talk to about what is going on that night. They are nice there but not extremely professional.
The food really is pretty good for that sort of thing.(I would avoid the kalua pork, or kalua pork any place that doesn't use a pit. Liquid smoke alert.)
I LOVE Tiki Terrace. It's just a tiny place but they've done an amazing job transforming a spot in a no-man's-land strip center into a very cool tropical hideaway. Super-friendly vibe...genuine Aloha spirit. The entertainment is great and the tropical drinks are quite good. The best thing I can say about the food is that it is infinitely better and more abundant than Hala Kahiki's (*wink*). I do like the Honolulu coconut chicken and the kahlua pork sandwich is OK. Some of the other stuff is truly ghastly (it pains me to say this, because they're such great people).
Of course, prior to the 1980s/90s food revolution (Alan Wong's, Roy's, Mavro, etc.) many of the restaurants in Hawaii were pretty terrible so I suppose Tiki Terrace is "authentic" in a slightly retro Hawaiian way.