Let's face it, Portland is a movie and beer town. Watching flicks and drinking beer are two great activities that get you indoors when the rains come. Luckily some genius decided to combine the two activities and the $3 "brew 'n view" theater has become a staple of life in this wet part of the world.
There is nothing like drinking a cold micro-brewed stout while watching a cheap movie in a restored vaudeville theater. The Bagdad on SE Hawthorne and 37th (236-9234) is our favorite McMenamins "brew 'n view". It's a grand old theater with a cool balcony and tables between every row.
The McMenamins Brothers have two other nearby theaters: The Mission Theater is in a restored Swedish Evangelical Mission that serves hamburgers instead of pizza. The seats in the balcony have the best view. The auditorium at The Kennedy School (a restored 1915 elementary school) has a great collection of mismatched couches, tables, and comfortable chairs to sit in while watching the movie. All McMenamins locals serve their own micro-brewed beer and make a variety of food.
Another great Portland movie house is the Laurelhurst Theater (2735 E Burnside / (503) 238-4088). It has a similar atmosphere in a less grand location but it makes up for it with more screens and beer choices. The small popcorn and pint of a microbrew for $4.50 is a great deal.
If you would like to forgo the alcohol and food, Portland has some other great alternative/independant movie theaters that are not in the brew 'n view category. Be sure to check out the Hollywood Theater, Clinton Street Theater, and Cinema 21 for relief from the blockbuster blues.