I'd avoid eating anywhere right in Times Square, it's a big tourist trap. I'd venture a little North and East. There are some great resturants on the East side and still walkable (10 - 15 minute walk).
Some of my favorites are Tao, BLT Steak and Crave (unfortunately its no longer open). The thing about NYC is there are a million and one restraurants and even the best will get differing opinions on whether the food is good or the prices too high.