UPDATE: Tao, while still tasty and good, increased its prices in 2008 as well as reducing its portion sizes. So, you pay more, but get less food. I still like the food here---they have delicious vegan milkshakes (12 oz. for $7 ??) and a great black bean burger ($8)---but I've cut back on going here as the place is so expensive and the portion sizes are so tiny.
Tao also nickle and dimes you for everything. Add avocado to a sandwich? $2.50. Extra bread? $2.50. Before you know it, your $8 meal turns out to be $13 or more with these add-ons and you leave still feeling hungry.
Also, they got rid of their vegan waffle (why???) and their veggie burger is not vegan either (it has cheese in it). What a disappointment. At least they added the black bean burger, which makes up for the loss of the cheese-filled veggie burger. Also, their macrobiotic rice plates pack more of a kick than you might guess, especially with toasted sesame oil.
All that said, Tao has great atmosphere. It's a cozy little corner joint with the feel of an old-time diner. The wait for food can be long, but that's only because each dish is lovingly prepared and hand-made; no short-cuts here.
The food is healthy, fresh and nicely prepared. They also feature at least one or two vegan desserts. Tao also has a large selection of health food and body-care items, as well as a small book section, in case you need more than just food.