This place was ground zero for the blogger/Gawker scene in 2003-2004 and has always been a big hangout for the early dodgeball.com crowd. My brain is hardwired to use "The Magician" as a test search.
This place saved one of my nights out. Excellent music, not too crowded and we managed to snag one of the front tables. Beers/prices decent. Stayed here the rest of the night for an enjoyable time.
The bartender here—I don't know her name—is the best in New York City. The kind of place you can come and read without being bothered. Or drink all night with a (big) group of good friends.
Front booths, right near the big windows, are by far the best people watching spots in the LES. (for a backup, hit the mini magic room at Local 138 around the corner on Ludlow)