Each Tuesday the Register reviews an area restaurant, with an emphasis on establishments where a couple can dine for $30 or less. Reader suggestions are welcomed.

For insight into the direction that downtown Napa is going, the history of restaurants at 1408 Clay St. tells the tale.

Next to a bank, across from a parking garage, this location started off as a bagel place back in the days when bagels were a hot new food. It was a cheap alternative to people who didn't want to eat at the Woolworth's counter on First Street.

Later, 1408 Clay was the home of Lucy's, a purveyor of fine soups and sandwiches in a setting that remained lunch-hour casual. The outdoor patio was probably more rustic than your own.

Now 1408 Clay has gone upscale, transformed into Posticino, "a great little Italian restaurant" with a menu of authentic northern Italian dishes in a far more stylish setting.

The front patio, with its snappy umbrellas, handsome trellis and potted olive trees, suggests a restaurant in wine country, not downtown.

We knew Posticino offered lunch within The Fork's price limits because we checked its Web site, www.posticinonapa.com. It's good read that will make you instantly hungry.

Lunch and dinner menus are similar, with specials daily. Lunch offerings are a dollar or two cheaper.

We arrived before noon on a weekday. We had our choice of indoors or outdoors. Given the nip in the air, the inside beckoned with cozy warmth.

The interior has been accented with dark wood including a faux beam ceiling. The tables were set with water and wine glasses, creating a sea of sparkle.

My companion remarked on what a lovely jewel box of a restaurant it had become, precious in every detail. It seemed inconceivable that we had once eaten bagel lunches here on stools screwed to the ground.

Every table had a yellow rose and a lacy cloth centerpiece that added a strong grace note. Our server was friendly. She ripped off segments of a house-baked loaf of bread with a flourish.

The bread was hearty with a hint of walnuts and came with a thick olive tapinade. Both were richly flavorful. Posticino strives to make your first food impression a good one.

Someone with a bigger budget and plenty of time could have put together an impressive multi-course lunch. The antipasti included fried squid, raw ahi tuna and prosciutto and parmigiano with truffle honey in the $9 to $11 range.

There were two soups and seven salads including a spectacular grilled King salmon on mixed lettuces with fresh tarragon mustard dressing for $15.

The five main courses included a chicken breast with a crust of parmigiano reggiano and porcini mushrooms on a bed of spinach and squash for $14. The most expensive item was grilled lamp chops with buckwheat polenta and braised fennel for $29.

In the middle of the menu were several panini sandwiches priced $11 and $12 and pastas from $10 to $16. That's where we ordered.

I picked $12 spinach pasta ribbons topped with a Bolognese sauce, which the menu described as containing beef, veal, chicken livers, herbs and tomatoes. In short, something I'd never try to make at home.

My companion chose the buffalo mozzarella panini sandwich, another $12 item that also came with rosemary garlic fries.

While we waited, our old memories of bagels and Lucy's soups were supplanted by new images of a bustling open kitchen, a nattily attired wait staff and a skillful building makeover that obscured the property's humble origins.

Posticino has created a world of culinary refinement in which the adjacent bank and parking garage somehow become irrelevant, if not completely invisible.

I didn't doubt for a minute that the food would reflect the soul of Italy, and it did. The finely ground meat topping on my spinach pasta was rich with subtle flavors.

Yet my companion's toasted foccacia sandwich was its own tasty thing, with tomatoes, red onions and a double layer of pesto giving snap to the mozzarella.

The rosemary garlic fries were a creative variation on the same old same old.

We did not sample from the two-page wine list loaded with quality wines from the Napa Valley and Italy. Wines by the glass were $4 to $7.

At Posticino, the food matches the decor which matches the service. Everything was first rate at a moderate price.

We passed on the desserts, which included tiramisu and a chocolate torte with hazelnut gelato and a warm chocolate sauce, both $7.

On another trip, we'd try the patio, which has heaters for cool weather.

Posticino is open weekdays, 11 a.m. to 10 p.m., Saturdays from noon to 10 p.m. The restaurant is closed Sundays. Reservations can be made.

Readers with tips about interesting places to eat should e-mail diningout@napanews.com