C.C.
I would look close to where your husband is working or at an area close to BART or Caltrains. It is crazy expensive to live here and with the price of gas, adding a long commute wouldn't make sense. There are nice areas in Sunnyvale, San Jose, Almadan, Santa Clara, Mountain View, and Saratoga. Living in a nicer neighborhood does not guarantee better schools, so be sure to investigate before you buy. You'll want to shop for a home in person if possible. There are also hundreds (if not thousands) of forclosures all over the bay area. Check them out online. Pleasanton alone has 100 homes in forclosure.
I live in Pleasanton and love it, but it is a ways from Mt. View, depending on how far from the 680 his work place is. I grew up in Belmont, it is overrated. The schools are mediocre and their parks and rec are insufficient for the population. There is only 1 park for over 45,000 residence. My parents still live there. Many cities on what is known as the peninsula are like this, ie, San Mateo, Redwood City, Burlingame, San Carlos, Hillsboro. Foster City is nice but very expensive as well. These cities are north from Mt. View.
Each part of the Bay Area has its own feel. Some are definately more family friendly than others. I have five children so that is important to us. My good friends brother lives near Almanden and is very happy. Happy house hunting. You may want to rent for 6 months somewhere and really get a feel for the area before making a final decision. And be sure to look around. It is a buyers market right now, (even if the prices don't seem like it). And remember some people are not realistically pricing their homes, so don't be afraid to offer low. Even the banks are taking short sales on some forclosures. Good luck!
Oh and Sunset magazine is a fun read, I pick up old copies at the public library for 25 cents (I enjoy the gardening section) but it does NOT reflect what life is like for most of us work-a-day people or SAHM's.