Everywhere in Koror is a cab ride away, and the cab will only cost between $2 and $7. Don't let them try to charge you more than that.
1. Elilie (sp? pronounced L - E - LIE) is a great new resturant with an awesome view and very close to the PPR (palau pacific resort). Japanese food, $10 - $15 for lunch.
2. Kramer's is great place to eat, and a great place to get a drink at night. Seafood, and all sorts of other food.
3. The Taj, as noted, has good Indian food.
4. Dragon Tai has good real japanese food.
5. At night, Captain Fin's, at the Waterfront Villa makes some good dishes.
6. Sam's has a bar and Grill, as does Neco's. Both make good food, and are a good place to unwind after a dive. You don't have to have dived with them to eat there, of course.
There's a Thai place, which isn't much to look at but the food is okay.
If you're on a budget (which if you're staying at the PPR you're probably not) a hidden treat is "Sarah's Yum Yum" or good old pizza from the Rock Island Cafe.