Shirley for a really nice Spanish Meal i would recommend one of the following:- Aitena, which is on Calle Rufaza in the Old Town. Thats the Street which is straight opposite the Ale Hop shop, its on the right hand side about 50 yds up, just on the corner of the small square that also houses the Hof van Holland restaurant, which is a Belgium/Dutch place, which is also very good. The Paella and Seafood caserole is very good at the Aitena. Its nice to sit outside there if its warm, or they have a nice log fire inside for cooler evenings. This place gets a lot of Spanish customers, partcularily at weekends, and late evening. It doesnt open till 8pm, and if you go at that time it will be fairly quiet, as most Sanish will eat out late in the evening, at around 10 onwards, theres a real buzz about the place.
Also just before you get to the old town just off Calle Gerona near the Benidorm Centre hotel is El Segoviano, another small Spanish restaurant that does superb lamb, which drops off the bone, a bit basic on the accompanyments to go with it, but its worth it for the lamb dish!! The Comic Rikki Stevens likes it too!!
http://www.rikkistevens.com/benidorm_restaurants.htm
El Meson, right on the corner at the Old Town End of calle Gerona is also excellent too, again its popular with the Spanish and tends to be quiet in the early evening but busy late on. Very good lamb, steaks, and suckling pig there!!
For Tapas just stick to Tapas alley to start with, La Cava de la Aragonessa, the one right at the end near the Queens Hotel, has a great selection, everyone knows where this is, so just ask!
Best Regards - Taggy