Sounds like you're deciding between living in SF vs. commuting into The City.
http://www.rentalguide.com
http://www.travel-mediainfo.com/San-Francisco/182096.htm
If it was just me and my wife (no kids), working in SF and looking to rent, I'd live in The City, hands down. But that's me. Of course, a year or so of that could make you more than ready for the suburbs, depending on your likes/dislikes. Walnut Creek is definitely a good choice in the East Bay.