Pepe Giallo is one of my new favorites. Great food, inexpensive prices, a nice little garden in back, very friendly service. Most importantly, both the house red and the house white are delicious and come in big, cheap carafes. Il Mulino it's not, but for great food and good, cheap wine, Pepe Giallo is worth coming to west chelsea for.
Pros: inexpensive, great food, great wine