I like the Deauville Inn, a casual seafood place in Strathmere. Just south of OC. Liquor is served.
Deauville is a fun place to hang out, very kid friendly. Kinda pricey for what it is (which is good, but not great), but bear in mind any place down the shore is going to be overpriced in peak season, regardless of quality.
Also, take a look at the discoussions about Margate and Longport restaurants and you'll find some good places.
Smitty's Clam Bar in Somers Point, on Bay Ave at Smith's MarinaThe Crab Trap on the circleCousin's at 1st & Asburyfor breakfast we like Arlene's on Asbury near 6th
Ma France Creperie, a french bistro right in Ocean City, believe it or not!
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