I posted this once before to another thread, but I'll throw it out again. The Web site
http://www.nomenu.com has a list of all the restaurants open in the city, broken down by neighbrohood and cuisine. Tom Fitzmorris, who operates the site, is the New Orleans version of Robin Garr and is the most plugged-in guy when it comes to food in the city. He hosts a daily three-hour radio show devoted to food and dining.
A few of my own recommendations: John Besh is one of the top chefs in the city right now. He operates several restaurants but August is the flagship. Acme Oyster House is good for oysters, po-boys and gumbo, although it's a bit touristy. Drago's in the Hilton is great as well. Try the charbroiled oysters (the best one bite of food in the city). Commander's Palace or the Upperline are good for the whole New Orleans dining experience.
As far as places to stay, it's probably best to stick to Canal Street, Royal or Bourbon, or maybe Convention Center Blvd. Anything more than a block or two off Canal in the CBD (downtown) might be ok if you didn't walk the neighborhood at night. Carondelet at night is a little rough. Unfortunately, crime is a major problem right now.
Please let us know how your trip went.