Santa Barbara Rehearsal Dinner
Nice reports locally using El Paseo restaurant for this type of event. The setting could not be more romantic: http://santabarbara.com/dining/review_read.asp?pk_restaurant=660
Most local restaurants don't have separate rooms that large. Hard to find the right combo for size and price. Looking first at some maybe at the lower end: Cafe Stella does events and so does Mulligan's at the SB Golf Course (thinking of lower priced venues here). Also Moby Dick has a private room right over the water that could be interesting and apparently they don't charge you for the room. None of these places are tops for food, but can do an okay job for an event if there are not picky eaters. Others have come here with similar questions so maybe there were some great finds in prior posts you could find with a search here.
Here is a list from our local restaurant guide for private rooms of various sizes that you can use to get started for price and size and then we might be able to help you choose: http://santabarbara.com/dining/restau...
These have the right size but the prices will be more premium: Stella Mares is a favorite, but Louie's is right up there too along with Canary Hotel. A sleeper place that might also be able to offer something is Crocodile.