I wouldn't call Montpelier a small town but a small city. I assume 68 is referring to the downtown area where you can walk thru in 5 min but when you live in the city of Montpelier it's much more than just the downturn area.
I really enjoyed the 3 years I lived there. Loved walking from my place on Elm St, it's a half mile to the downtown area so it took me about 10 minutes, to the awesome library or the grocery store. There is a small version of a major grocery chain downtown which is great if you like walking vs driving.
Being the state capitol it's a busy little burg and at times walking is faster than driving anyway. About 7,000 residents but 10,000 work in Montpelier. I drive to Montpelier about once a week and usually park on State St near the capitol and walk to the downtown area. About a 3 min walk to the center of town.
Lots of interesting areas like the Hubbard Park for great hiking and x-c skiing within city limits. The College Ave area, extreme right side of pic, is gorgeous with 3 small colleges.
I also agree that there really is not any bad areas but some consider Barre St area abit rough. The Hunger Mountain Food Co-op is awesome. Several great restaurants and bars.
Montpelier even has a minor league baseball team but understand it's at the lowest level, even lower than the old Vermont Expos team up in Burlington, of pro ball but still fun and cheap to see if your a baseball fan.
SkiMRV Gallery
If you do search there are a bunch of threads about Montpelier. Here is one with pics
http://www.city-data.com/forum/vermo...er-photos.html