Like MangoSmoothie, I recommend living slightly east of the Capitol, and the Willy Street neighborhood is a great option. Not many undergrads live in that area so you won't have to worry about loud parties- you'll also get more of the 'local vibe' in that neighborhood. There are some very nice flats on Jenifer and Spaight streets in that area- check out the area near BB Clarke Beach and Orton Park- you'll be right next to the lake, biking distance to UW, and walking distance to the Willy St. Coop for groceries, as well as walking distance to several coffee shops and restaurants.