Mr natural, veggie heaven, bouldin creek, and dhaba joy are the place I frequent when not eating at home.
I would suggest staying away from hyde park, unless you can find a reasonable deal (where are you coming from and what do you pay for rent now?)
To give you some idea I live 10.3 miles from the capitol, and the house I bought sold for $150,000 last year and the house next to me was up for rent for a little while @$1100. These are larger sized homes with yards for dogs, but you probably won't find anything cheaper than that in hyde park.
East austin is likely where you would want to be. In generaly right now there are good deals on the east side. some of the places aren't fixed up yet, so are, and some still have crack dealers on the streets.
Are y'all planning on coming before you choose a place to live or will you be finding a place before you come? If you will be looking before you come, I can try and get you in touch with my realtor - sometimes he's SUPER busy) Also, if you are interested in a place, I would probably be able to run by and take a few pics or something, since I've been pretty much free lately.
Well, I'll offer any other suggestions if you ask
and would be more than happy to help you acclimate to our fair city