Le Zie, on 7th Avenue and 20th Street, is a great neighborhood Italian. Its spaghetti and meatballs are great. Last time I was there, a few weeks ago, I ordered the cheapest bottle of wine on the menu, a 2003 Bodegas Lan Rioja Crianza, which was phenomenal at that price point (around $30).
Lots of joints in Chelsea (my nabe). Can you be more specific -- if not on cuisine, then atmosphere, price range, etc?
Here are a couple of options:
Bombay Talkie on 9th Ave near 21st -- hip-ish Indian. Not your usually East 6th-street fare. Good cocktails. Depending how you order, this can be inexpensive or extremely pricey. (Check menu on their website.)
Blossom -- a halfway swanky vegetarian place right next door to Bombay Talkie.
Cafe Granee (or some such name -- it used to be called something else and I never remember the new name) right next to Blossom, on the corner of 9th Ave and 21st: low-key French cafe -- crepes, mussels, salads, etc.
If you go to any of these, you can have cupcakes for dessert at the bakery right across 9th Ave.
There are a million other places in the neighborhood . . .