Hi Anna J,
About wine: virtually every taverna serves what is known as village wine, which is produced in the various villages throughout Corfu, and also on the mainland, espeically in the area of Nemea.
The quality of these wines varies greatly from very poor to very good, but in general most of the local wines are drinkable and are sold very cheap by the karaf. There are also many bottled wines from throughout Greece available in local stores. Many of these wines are very good quality as well as excellent value.
I would suggest Nemea or Boutari, each of which produce many varieties. For a very rich and sweet wine I would suggest Mavrodaphne, which is produced in Patras and is widely available on Corfu (this is a fortified wine, similiar to port). And lastly, there is retsina (if you dare!)
Hope this helps.