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Chapel Hill (or Chapel "Thrill" as some call it) is a paradise for college students and young professionals seeking a fun night out on the town. Most of the action centers on Franklin Street, which runs alongside the UNC campus. There are bars and clubs lined up and down this street. Some are less stringent than others, but wherever you go, make sure to have your ID handy. Frankiln Street is also a well-known congregating ground on Halloween. Revelers decked out in costumes flood the street to form a sort of procession, while stopping into the festive bars and clubs along the way.
For great live music in the Triangle Area, you can't beat Cat's Cradle ( http://www.catscradle.com/schedule.html). Performers have included socially conscious hip hop artist Talib Kweli and eclectic rock band Rusted Root.
Stop by Bailey's on the way back to the hotel for a nightcap and a burger or pizza. They have a late night menu with lots of good food from burgers and pizza to mahi and dessert martinis.