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What type of food are you looking for? I think there are a lot of place that would be available to you.
There is this place La Mela in Little Italy that has a set menu and wine is included for like $60-$70 per head. You can also get a semi-private room....
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we are doing ours a Becco for that amount, and have a private room for 40. after calling around to several places, we found that Becco was the best bet.
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If you're looking for a hip joint...there's a place called Basta Pasta on 17th Street between 5th & 6th Avenue. The website is www.bastapastanyc.com and it's a great place! The food is good and it's a fusion between Japanese and Italian. It is rather small but they may take reservations if you have that many people coming.
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Bottino (50/pp), i Trulli (85/pp), Savoy (65/pp), the Smith (55-85/pp), Jane (55-85pp), Gradisca (starting at $3k flat fee), Caracello (45/pp), I' Coppi (3500 flat fee), Otto (40-55pp) Borgo Antico (35-60pp). All prices do not include tax and tip, usually of about 9% and 20%. Most of these prices are just for food, not alcohol. I put the ones in that are out of your price range in case any other people need them. good luck!
I raided my own spreadsheet -- now I just hope we don't have the same day! :) All of these restaurants have private or semi-private rooms, btw. Gradisca has great homemade pasta and a very cool back room, dimly lit with lots of candles. At Savoy, you get the whole upstairs but everything seems a bit overpriced, and the room is not quite as charming, although it is very nice and has a fireplace. The biggest problem with the room at Savoy is that there is a divider that doesn't close all the way so there may be visual continuity problems for speeches adn the like. The others I haven't eaten at yet. You should post here if fyou come up with some that aren't on this list -- I focused on Italian restaurants below 30th st.
LOL - Im September 19th (for the rehersal). We have tried the Harrison but they are booked, The House which is $130 - $150 pp, 'inoteca for $2750 and Blue Hill which is $2000 (all including wine but not tip or tax). I was thinking I was going to have to up our budget quite significantly until your post!!! I'll let everyone know what we come up with :)
La Mela is really not appropriate - there is a large phallus hanging from the ceiling in the main dining room!
There are SO many places in Manhattan at which you could do your dinner for 20-25 for under $100 per person. It all depends on the food, ambience, and neighborhood you want!
If you are looking for something more casual, I would recommend three Italian restaurants in the East Village, all owned by the same people: Frank, Lil' Frankie's, and Supper. They all have some of the best Italian I have ever had, and their catering guys are great (they are doing our reception).
I am having my RD at the Boat Basin Cafe, and I will be able to go in at about 1200 for 26 people (just in case you wanted to save some bucks!!)
Thanks for all the suggestions everyone! Thought I would let you know that we decided on Jane. It is $50 a person for a 4 course meal, in the private dining room over a period of 3 hours. We will be having one red and one white poured through out the evening and billed at cost. There was also an option to add an hour open bar, which with dinner would have been $85 a person. FI and I went to check it out the other night - the food, service and atmosphere was great! In all we are very happy with the choice 
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Can anyone suggest a good place for a Friday night rehearsal dinner in NYC (Manhattan preferably, the guest would get freaked out having to travel even more then they are already!). It would be for between 20 - 25 people, and we are hoping to spend max. $2200. TIA!