That's the week I am taking off!
Nate mentioned the main Jazz clubs
http://www.therex.ca
http://www.montrealbistro.com
I don't know your budget - but you could start here. I can comment on a few of these places. They are not all budget hotels - some are quite expensive, just as much as downtown Chicago.
http://www.budgethotels.com/listings.php?city=Toronto,ON,CA
Here's a good map of downtown w/cultural highlights
http://www.toronto.ca/torontomaps/pdf/visitor_map_page1.pdf
This is the "Chicago Reader" for Toronto
http://www.nowtoronto.com
Things to do
You can look through here
http://www.frommers.com/destinations/toronto/34_indattr.html
From this list, I'd say the Art Gallery of Ontario (though under construction), the Royal Ontario Museum, Hockey Hall of Fame, and Toronto Island (you can take a ferry for $6 and get a great view and some great photos of the city).
I'm sure I'll come up with more when I'm not at work!