how much money to eat on in israel?

It depends on what you want to eat.
- at the low end, you can buy street food - falaffel, shwarma, pizza slices, etc - for 15-20 NIS
- you can go into "coffee shop" restaurants (e.g. Aroma, Arcaffe, etc) and order a huge salad with tuna, eggs, chicken, etc (usually enough for two) for 45-55 NIS.
- you can eat at very good restaurants for 100-150+ NIS (most restaurants have lunchtime specials that are much cheaper).

Note that as in most cities the prices vary according to the neighbourhood. Prices in Jaffa are generally cheaper than in affluent north Tel-Aviv.

You can go into any supermarket and buy prepared salads, fish, meats, cheeses, bread and rolls, and make your own meals.

On Friday you can go to the Food Fair in the basement of Dizengoff Center and buy a wide variety of prepared foods.

You can browse through this site to get the range of restaurant prices:
http://www.restaurants.co.il/

On average how much should I expect to spend daily? Should $2,000 USD be enough to eat good on/transportation fare for 2 weeks? Or I should I save more? I heard certain things cost alot more there -vs- the U.S.

Thanks for the help :)

Prices in Israel are generally more expensive than in the US and are similar to those in Western Europe.

Note that most hotels in Israel provide huge buffet breakfasts for their guests. So you probably will not have to buy breakfast and will likely be so stuffed that you will only need a small snack until dinner !

$2000/14 = $142 per day = ~525 NIS ; if you look at the prices I posted above you will see that your budget is sufficient even for gourmet dinners.

Note that you can pay for all meals and purchases with a credit card and can withdraw extra cash from any ATM.

I see that the $2000 includes transportation, which is relatively cheap in Israel. A city bus costs 6.60 NIS (about $1.75). The bus to Jerusalem is about 20 NIS ($5.40), a return train ticket to Akko is only 70.50 NIS (about $19), etc, etc, so $2000 will easily cover your transportation as well.

You can get info on transportation costs and schedules here:
Train schedules:
http://www.rail.co.il/EN/Pages/HomePage.aspx
Bus schedules:
http://www.egged.co.il/Eng/
www.otobusim.co.il

Thank you very much for the help :)

One more thing, do you have to get any vaccine shots before going to Israel? One of my friends tried telling me I do, but I've never hear anything that you had to.

Vaccine shots - no !