Hi,
The prettiest place in Corfu is Paleocastritsa (not sure if I've spelt it correctly) I think it's on the west coast. Sidari has a great beach but it's a bit on the tacky side.
You can eat very cheaply and well if you eat at the local restaurants - were the locals go, not the upmarket ones just for the tourists. The greek take-aways are excellent - try the giros (all sorts of fillings wrapped up in a pitta bread, like a pancake).
Wherever you go - have a great time! The Greek people are very friendly and will go out of there way to ensure you enjoy yourself
Salsababe