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I second the rec for Caffe Driade. http://www.caffedriade.com/
But it isn't the sort of place where you can just run in for a cup & run out again. It is a place to linger.
I've also heard good things about 3 Cups (on Franklin Street in Chapel Hill), and Blue Coffee Co. (in downtown Durham).
The coffee out here sucks. Starbucks sucks but at least they are consistently mediocre. When they get a Pete's coffee out here then there will be good coffee.
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