Baci & Abbracci, Aurora, and not much else - search these boards for further descriptions on each of these places. There are some old Italian pastry shops as you head East towards Bushwick as well if you want authentic lard bread - Napoli seems to get the most acclaim on these boards.
Baci & Abbracci
204 Grand Street, Brooklyn, NY 11211
70 Grand Street, Brooklyn, NY 11211
616 Metropolitan Ave, Brooklyn, NY 11211
Second Baci & Abracci. Also, Frost is a pretty traditional place that had a great reputation when I lived there a few years ago. It was always recommended to me by the italian locals and I enjoyed it the one time I went.
re: Brian S
Driggs Pizza is a fine slice joint -- as is San Marco on Lorimer near Metro -- but Baci Abracci better delivery option, IMO. Both Driggs and San Marco make a credible grandma's pizza and are solid for quick Italian takeout like minestrone, chk/veal parm, pasta e fagioli, etc. when you're in the mood for that kind of thing.
Aurora equivalent to mid-tier Italian in Manhattan, but in terms of relative quality in that price range doesn't hold a candle to Marlow or Dressler (neither of which I would trade for many Manhattan restaurants at any level, particularly Marlow).
Italian shopping tips:
Fresh sausage and soppressata at Mario & Sons butcher shop on Metro btwn Leonard and Manhattan. Mario's beef has gone slightly downhill the past yr or so (as has most people's) but he remains a great old school butcher. Shop there while you can -- he's always talking abt retiring, and it's not clear that the sons (or nephew) are going to want to take over. Won't be the same in any case (although the nephew has potential).
Also fresh mozzarella and (on Saturdays) roast beef from Georgia, the old lady who runs the Italian looking storefront on Metro btwn Lorimer and Leonard. (N side of street, 75-yr old provolone hanging in the window. Can't remember the name of the store but if you ask around for the mozzarella lady you'll find her.)
Better (IMO), but not as picturesque, is the mozzarella from the garage on Leonard, btwn Metro and Devoe. Knock on the garage door in the midday hrs Mon-Thurs. There's often but not always a white van (I think it says Pecoraro or something like that) parked in the driveway when they're open.
Napoli (mentioned above) great neighborhood bakery. Lorimer Market (Lorimer @ Skillman) makes a decent hero and is good for supplies such as pancetta etc.
Fortunato (Manhattan @ Devoe) many say is terminally downhill. I'd agree in large part, but two items worth the trip -- pignoli cookies and the baby cannoli.