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Chico's awesome. Fun town. Very much a small town atmosphere...totally different than san diego. If that's what you're looking for then it'd be perfect.
I recommend living close to Chico State in the college neighborhoods, rather than somewhere in between Chico and Butte. Living there can be louder definitely (but really depends on where..) but will be much more fun, much easier to meet people and have things to do, and just convenient to all the good stuff in Chico. I'd take a scouting trip and check out the different areas to see what you like best. But to give you a start... looking at the map, the student areas would be the blocks south of the campus (the best imo, also where most frat/sor houses are), some of the areas to the west of campus and the railroad tracks (especially along Nord ave.), and then some of the areas on the north side of campus. To the east is the park, downtown areas, and more family neighborhoods.
Hope that helps, any specific questions just ask!
Tim
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