In reply to Tom Ripley Mountain Guide:
Rule no.1 of living in Sheffield - stay west of the A61 (except for a few bits of Meersbrook, which are quite nice).
Either Walkley/Crookes (Crookes is more studenty and a bit more expensive) or Meersbrook/Nether Edge fit most bills.
Walkley/Crookes are nearer to the hospitals and easier for Barnsley and Rotherham. The Foundry is 20 minutes walk down the hill. The local shops are better in Crookes, but there's a brilliant butchers in Walkley, and a great grocers on the way into town from either. I can't comment on the shops in Meersbrook/Nether Edge, but the Works is within easy walking distance, and it's where most of the climbers I know live.
Both are on or near main roads, Meersbrook/Nether Edge are closer to Chesterfield and Doncaster is about the same from either.
I'd expect a 2/3 bedroom terraced house (generally one large and one small bedroom on the first floor and an attic conversion if you want another bedroom) to be £120-130k, although it was a couple of years ago that I was last really paying attention. If that's a bit over budget, then there are some nice parts of places like Hillsborough which are probably a bit cheaper.
I'm sure somebody will be along soon to tell you that there are some lovely bits of the Manor or Darnall (or even Rotherham), but they'll be lying...