I have been down in that area 3 of the last 4 years. We would take Teaster Lane that runs parallel to the main street. Theres a decent moonshine place toward the south end caled Tennessee shine I believe. I bought a bottle of caramel whiskey there and I am not much of a whiskey drinker!
My friends mom likes to hang out at the Island. Couple good restaurants in there, one is Paula Deans that is family style.
We found an Italian place on the north side of town that had the best lasagna I ever had. Johnny Carinos, its on the east side of the parkway. I am thinking there is a rib place that is about across from it that is supposed to be pretty good. I looked and it is south of Johnnys called Calhouns. I also liked Bullfish which is basically beside Johnny Carinos.
People seem to like Bennetts BBQ also but I have had hit or miss food there. Last time it was not warm and just average.

Theres all kinds of fun stuff to do. There is a pretty neat alpine coaster on 321 or Old Weirs Valley Road. I would recommend the muscle car museum. I have not been there for a few years but they had some good cars at the time. If you dont want to spend much you can always drive toward Gatlinburg and park and walk the trails or go into the natonal park. Last time we drove to Cades Cove and that was really interesting to see. It is south of Gatlinburg