Tiff, when i was seeing a friend of Nicole and Stu's she took me to an italien in the centre that was really nice - small and intimate. That is right in the centre, im sure Stu will be able to tell you what it's called as i can't remember. A few miles from blackpool is Lytham St Anne's. Again i went there - a place called Joya i think, which was a cut above blackpool.
As for a hotel, blackpool has a Hilton - that's where i'd go, as the others are pretty grotty. Nicole is the best person to advise as she works in the industry.
Good Luck