Lived in Memphis for a couple of years, actually, in downtown, on Mud Island. I think Memphis looks pretty scary, but it's not that dangerous.
I would highly recommend Mud Island if you would like to hang out in a nice residential area - it's really beautiful down there. Also, that's probably still the only place to go to a grocery store downtown, and the store is small and kind of expensive. We used to drive to Arkansas to shop for food. Downtown and less savory areas around it are mostly known for property crime - car break ins in particular. If you park in a garage, you are pretty much fine.
All other nice areas are way out in Germantown, Cordova, and Collierville. The Graceland is a bit kitschy, but nothing spectacular, in my opinion. It is also in a sketchy part of town.
Non-tourist trap restaurants.
The Butcher Shop - unfortunately, relocated from downtown way out in the boonies -
http://thebutchershop.com/
Boscos Squared in Midtown.
It's a good town to visit, but a bit tough to live in, IMHO.