First of all forget the combat zone, it closed down 5 years ago.
Sunworld, if you get booked in here, then just bring a large cardboard box and sleep on the streets, it will be cleaner, safer and more comfy.
Capones is without doubt a superb place to go for Italian food, I have had Italians tell me that those 2 chefs from Verona make the best food they have had outside Italy.
Capone's Tavern: Al's back in town! IT is a 10 second second wak from the MRT station
The owner also owns The Tavern, which has about 130 screens showing whatever sport you want to watch on it, also great food and service.
Brass Monkey gets lively especially on Thursday which is Ladies night.
A trip out on the MRT to Danshui is good and stop for sunset and lots of great food. Worth going to the fort to watch the sunset and see some great history.
Hope this helps