It all depends on what you're looking for and what you can afford. If you have the money and you're looking for good schools, then the Westlake area is going to be at the top of your list. If you don't have kids and still have money, and want to live near the scene, then some of the newer downtown condos/lofts are going to fit the bill.

There's also a gentrification push on for the east side(east of I-35), where they are developing a lot of live/work spaces and a number of condo projects. The prices originally started off reasonable, but people are driving them up to the point of ridiculous.

Other things to keep in mind will be where your office is, and how much time you want to spend in traffic everyday. There are 2 main North/South roads in Austin, and they turn to parking lots during drive times. 10 miles can take you 45-60 minutes. Some is due to the driving, but most is due to really poor highway design(funneling 4 lanes to 3 a mile before downtown, where everyone exits).

Anyway, give a little more info on your situation, the general area of your office, and what your interests are, and I'll try to be more specific.

Hope this helps!

J