Prague is a truly beautiful and historic city and should be on everyone's must-visit list for Europe. It's one of the only cities in Europe that has survived, in tact, through mulitiple world wars and as a result is an interesting mix of ancient architecture blended with communist upgrades.
I can't remember, but we stayed less than five minutes off the main square, which is where anyone who visits will want to stay.
I can't recall any one place in particular... we ate in the square a few times, and by the river once (which I do remember was good) and one of the nicer restaurants in the area that the hotel concierge recommended.
Sunset dinner cruise
Shopping (it's really good here, I took home several pieces of jewelry and an antique oil painting)