I currently live in Berkeley and have to admit I am very sad that I will be leaving this summer. Berkeley is an AMAZING place to live. The entire Bay Area is for that matter. You'll have to look past the slew of homeless youngsters that pan-handle on Telegraph. They are harmless. There is much to do: good music, art, outdoors activities, and food! The university offers student housing, it is pricey but everything is in the Bay area. I live in student family housing provided by the University. When I transferred to Berkeley from So Cal I was taken aback by the cost of living, but we've adjusted well living on a tight budget. It is all worth it, because there is never a dull moment in Berkeley.
You should have no problem finding housing as there is plenty around campus both privately and University owned. I'd check out the options for University housing @ http://www.housing.berkeley.edu/livingatcal/ and, of course, craigslist. Most of my GSIs (Graduate Student Instructor) live in Oakland and San Francisco, both are an easy commute via the BART (Bay Area Rapid Transit).
Congratulations! Good Luck!