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Yeah I'd recommend Jersey City. The PATH has a direct line between Jersey City and Newark Penn Station. From Hoboken you'd have to switch PATH trains at Journal Square, which doesn't cost much time, but a direct one-seat ride is always better. Also, you're going to have a difficult time affording Hoboken (and even parts of JC) on 600-1100. It's probably possible, but would be very difficult to find good places for that price. You could do it with a roommate. Check the prices on craigslist.
New Brunswick is a viable option (I believe somebody said it's too far). There are express trains that will get you from NB to Newark Penn in 20-25 minutes. NB isn't a bad place to be, it's urban and has lots of activity associated with Rutgers University, but it's not as big or active as Jersey City or Hoboken.
I'd say also check out Harrison. It's not the most vibrant, lively town around, but it has a good set of businesses on its main street and is one PATH stop away from Newark Penn. It would also be very easy to find a nice small place for under 1000 there.
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