August 12, 1988

LEAD: IN this summer of discontent for so many restaurants and clubs, not all is gloom and thunder. Sure, Il Palazzo has gone belly up. Maxwell's Plum has succumbed. Nobody talks about Nell's or Bice anymore, and there are empty banquettes at the Four Seasons and the Quilted Giraffe. But the Darwinian struggle rages on, and, while the pace has slowed, the fickle populace still has an insatiable taste for adventure.

LEAD: In examining the conduct of the police in clashes with protesters at Tompkins Square Park last weekend, the Civilian Complaint Review Board will apparently face the toughest challenge of its 35-year history, police officials and other experts said yesterday.

LEAD: The Economy

LEAD: WHEN photographs are framed and hung in museums and galleries, we can assume they are meant to be considered works of art. Yet because they are often records of specific times and places, photographs also function as historical relics, showing us what our forebears considered worth preserving with a camera.

LEAD: Insurance Cutoff Halted