Hi and welcome to Madison! Hope it proves to be a good fit for you and your spouse.
Madison's size is such that most of the city is within about 15-20 minutes' drive from the university (unless you get caught by a train or it's blizzarding), so that covers a lot of ground. Living very close to the university is likely to be more expensive, and the lifestyle choices of your neighbors, most of whom will be between the ages of 19 and 24, may give you some grief.
Not to be a cop-out or anything, but there are about half a dozen or so threads that cover a lot of what you're asking in the Madison sub-forum. However, they're kind of scattered throughout the listings, and if you don't know what to look for, you might not find them. I went back through looking for some that I recall as being fairly informative, and the links are below:
http://www.city-data.com/forum/madis...re-should.html
http://www.city-data.com/forum/madis...rdability.html
http://www.city-data.com/forum/madis...west-side.html
http://www.city-data.com/forum/madis...t-isthmus.html
http://www.city-data.com/forum/madis...-profiles.html
http://www.city-data.com/forum/madis...ghborhood.html
http://www.city-data.com/forum/madis...te-school.html
In addition to those, you can find a lot of very helpful data in this thread, which can link you to a whole bunch of other helpful sites for more data:
http://www.city-data.com/forum/madis...adison-wi.html
Good luck, and if any of those threads spark additional questions in your mind, please pop back in and post again. We'll be glad to answer if we can!