Don't worry about the transfer - it's a long time since the only vessel plying between Corfu and paxos was the Camelia (very old and very slow). Enjoy the cruise as there's plenty to look at - you will see Corfu town (including the "Old Fort" which features in "For Your Eyes Only", the east coast of the island, the mainland coast (including the Sivota Islands) and then Paxos.
As I've said before, Lakka is my favourite spot on Paxos (a great and safe place to moor/anchor when we are sailing) Boat hire is available in the harbour - nestled in the left hand corner, looking out to sea. A great trip is to go right around the island as the caves on the west side are really worth a visit but I'm not sure if it's allowed and you have to be careful with the weather - the mornings are usually ok, but the prevailing NW wind can make it very tricky. Weather information (which is uncannily accurate) can usually be found in the Planos Travel shop window - just where the hire boats are.
As for eating, there is plenty of chioce. There are watersidetavernas dotted around the bay, which at this time of year are great for lunch, but you might find those away from the waterfront are better in the evenings as it can get quite cool. There are a couple of good ones in the main square (sorry, can't remember the names and more in te back streets. (My favourite is the Stanisos Gardens, probably because it's just a bit different as you can sit outside, in a virtually walled garden.
There are plenty of bars - all good. One in the centre of the main harbour mooring area is popular with yacht/flottila crews and can be very lively later in the evening (again, can't remember the name) and there is a very caracterful place called The Harbour Lights very close by.
Swimming is safe - as always in Greece, keep an eye open for boats moving around - as the bay is virtually landlocked, so the water will be fairly calm ebven when it's blowing an absolute hooley outside.