As mentioned elsewhere on this board, the Slow Food Guide to the Osterias of Italy is now available in English. There is a thread about it on this board. You can also go to slowfood.com for more info or buy the book. It is well worth the cost.
Tamburini, in Bologna, is one of the finest food shops/delis in all of Italy. It is certainly worth a visit. They serve lunch there as well.
Go to via delle Belle Arti in Bologna and choose any of the restaurants. They are all excellent. Tamburini is good for lunch (although, I wouldn't say it is the best) and if you are picking something up to cook at home. Also, Osteria del Orso near via delle Belle Arti is a great place for a casual dinner, just ask around to find it. It is on a small street. At the Hotel University they speak English.
We were in Modena last month. Stayed at Hotel Real Fini which was on the outskirts of town - a good walk to downtown area. They have a sister hotel in town - can't remember the name of it - but it was booked. Even though it was a bit away from things, it was a lovely hotel with a very helpful desk manager. He recommended Ristorante Mofo, Vicolo Frassone, 10, tel. 059 238080. DH and I fell in love with the place and our informative young waiter. The cuisine is fusion - a bit modern - not classic Modenese - but superbly cooked and presented. Well worth searching out on it's little alleyway.