I think one poster above mentioned Crab Alley and Sunset Grille (although they called it "sunset restaurant"). I would avoid Crab Alley for everything but AYCE Crabs.
Good places in Ocean City:
Marlin Moon Grille (West Ocean City, across from the outlets, in the Francis Scott Key Hotel) - good seafood dishes
Faustos (North Ocean City) and Ristorante Antipasti (30th Street) - good Italian, they have a very good Rockfish dish as I recall
The Shark (46th Street) - pretty good for seafood (including shark)
Smoker's BBQ Pit (West Ocean City) - good cheap-eats on Rte. 611 in West Ocean City, BBQ pork, ham, brisket, etc.
Mad Hatter's (35th Street +/-) - funky eatery, inexpensive sandwiches, very good
Devito's (North Ocean City) - italian deli, reminds me of Vace in DC without the pizza