While waiting on friends and deciding what to eat the first night in Vegas, our friends in our group recommended this restaurant. Take the escalator in the Palazzo forum, above the waterfall, and it's not hard to find, but it's a small restaurant. Even though they have additional seating out in the corridor/walkway, you're there for the food. If you come during rush hour for dinner, be prepared to wait depending on how large your party is. We had 6 and it took us about 45 min - 1 hr. Wait was totally worth it for the following reasons:
1) They serve hot fresh bread, garlic olive oil bread with option of dipping in balsamic vinegar and olive oil
2) The portions are filling and very affordable for Las Vegas prices - $16 - $30ish for entrees (I recommend the pasta)
3) Service is attentive and they speak Italian (great sign for an Italian restaurant)
I personally had the Linguine with Shrimp Marinara and it was the highlight meal of the trip. I would love to take a date to this restaurant or a small group of friends. It's not the most romantic environment, but the food is delicious!