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THIS RESTAURANT IS CLOSED Palomino Restaurant Review: Although Palomino is a chain restaurant, with outlets from San Francisco to Indianapolis, you would hardly know it. In Honolulu, it positively buzzes with life, possibly because its the only fancy restaurant downtown. Fancy it is, with its Leger paintings, Italian glass lighting fixtures, wood walls, marble floors. The menu seldom changes and makes the most of the restaurants wood-burning oven. Were fond of New Zealand mussels, a generous portion popped live into the oven and then drizzled with a lemon-rosemary butter, or the Italian-style pizzas topped with Niçoise olives, prosciutto, asparagus and green beans. Among the more traditional entrées, we liked the chicken stuffed under the skin with garlic, herbs and bread crumbs, then roasted. Best of all, we like sitting along the 50-foot bar, checking out the scene---a splendid diversity of ages and types, dress and genders. Two other good things: late night food, till 1 a.m. on weekends, and a reasonable check. Not so good things: a menu with limited flavors, a wine list thats not for the serious, and servers who are resolutely cheerful and chatty.