The basic rule regarding the food and meat of the People of the Book is that it if Halal. A Muslim can eat their food and marry their women, as stated in the following Ayat:
"Made lawful to you this day are At-Tayyibat [all kinds of Halal (lawful) foods, which Allah has made lawful (meat of slaughtered eatable animals, etc. milk products, fats, vegetables and fruits, etc..). The food (slaughtered cattle, eatable animals, etc.) of the people of the Scripture (Jews and Christians) is lawful to you and yours is lawful to them. (Lawful to you in marriage) are chaste women from the believers and chaste women from the believers and chaste women from those who were given the Scripture (Jews and Christians) before your time, when you have given their due Mahr (bridal-money given by the husband to his wife) desiring chastity (i.e. taking them in legal wedlock) not committing illegal sexual intercourse, nor taking them as girl friends. And whosoever disbelieves in the Oneness of Allah and in all the other Articles of Faith [i.e. His (Allah’s), Angels, His Holy Books, His Messengers, the Day of Resurrection and Al-Qadar (Divine Preordainments)], then fruitless is his work, and in the Hereafter he will be among the losers." (Al-Ma’idah 5:5)
People of the Book specifically means Christians and Jews. Scholars have discussed in great detail exactly what is meant by the expression "People of the Book" and whether or not that meaning would change with time. The majority of scholars say that the meaning of People of the Book has not changed and should not change with time, even if the Christians and Jews deviate more in their path from the True Path and regardless of how much they practice of their religion. The reasons for this understanding are very simple. Firstly, all or most of these deviations existed even before the revelation of the Quran to our Prophet (SAW), yet Allah (SWT) called them the People of the Book. Second, Allah (SWT) did not mention in the Quran - and He surely knows that they are going to change. We should not, therefore, pay attention to these changes, and should treat them, in every way in which we deal with them, as who they are - People of the Book.
Rasheed Ridhaa, a respected scholar who lived at the turn of the century, said in his book of Tafseer: "Allah (SWT) prohibited us from marrying Mushrik women, yet He (SWT) also permitted us - in a clear and direct manner in the same Ayat - to marry the women of the People of the Book. Since marriage is more important than eating, we should not, therefore, put any restrictions on the rulings derived from the Ayat regarding their food or who they are." (Tafseer al-Manar, B1 / P353)
It should be pointed out that the Dhabeehah of the People of the Book is Halal regardless of whether their country is considered to be part of the Daar-ul-Harb (at war with Muslims) or Daar-us-Salaam (at peace with Muslims). Imam Nawawee has reported on the consensus of scholars on this matter (al Majmuu’a, V9 / P68).