Luella's is THE BEST BBQ I've ever had. And I'm a southern native. Their sauces are Gluten-Free as well.
Earthfare (West AVL off of I-240 coming into town) and Greenlife (north Asheville, Merrimon Avenue) both have pretty good paleo options. Local as well (though Greenlife was recently bought out by Whole Foods). I would recommend Greenlife over Earthfare for meat. The farmers' markets should still be going on throughout various parts of the city on different days.
If you're willing to put out $$, there's also the Fresh Market on the same street as Greenlife but a bit farther north. They tend to have fancier, "higher quality" food.
Good restaurants (somewhat paleo adaptable): Papa's & Beer (mexican), Tupelo Honey ("southern fusion", but just really damn good), Luella's, 12 Bones BBQ, Posana Cafe is all gluten free and has great paleo dishes, and Early Girl Cafe (local, "southern", good meat).