My girlfriend is an IU alum, and we went for a football game last year. If you have time, definitely walk throughout the Bloomington campus to see the famous sites like the Sample Gates, the insert-name-I'm-forgetting-here fountain, etc. It is truly a beautiful campus.
For bars, anything on Kirkwood Avenue is where the action is. Since this is a basketball trip, Upstairs Pub has a ton of cool memorabilia from the Bobby Knight championship days (the bar counter is encased wood from the old court). Kilroy's is more of a student/party atmosphere but you can definitely drink cheaply and it's 3 levels plus a patio if you want to avoid the kids. I also loved Nick's English Hut for the sports decor/memorabilia on the wall. They're all within 1-2 blocks of each other. Brothers was good too, but is a bit further
For food: Mother Bear's Pizza, or The Tap for a broader food selection (not exactly 5-star cuisine, but good food/beer and gets the job done).
If you like breweries, we killed time before heading home at Switchyard Brewing Company. Solid beer.
