Thanks for the replies.
The whole story comes down to this:
For the past few years I've taken the park and ride bus 2x a week. If I were to take it 5 days/week, I'd still only be paying $105/month in transportation costs. I love my little place, I love being away from a big city, and mostly I love the clean air and the mountains.
My husband and I do have a chance to live close to the medical center, with cheap rent, but it will be under someone else's rules, and he's doesn't believe the deal will hold, that we'll be stuck with two mortgages or at least one mortgage and then the place next to the medical center. What happens if the deal folds and we've got all out stuff there and no $ to move back, or nowhere to move back to if we've got tenants?
As for the commute:
Many nurses I've worked with for the past few years make the commute, there's a van-pool leaving from my hospital to university, and the librarian at my hospital has said he'd do his best to get all the books I need via inter-library loan.
However, this still means a 2 hour commute for the first two years. At the second look day, we were told that the 3rd and 4th years are more flexible (and in fact, I could do them abroad if I chose to, so I might be able to do them here). Well there's still no telling until after I get all the information from the school, and then I can ask more particulars about class schedules and what not (this is a strong PBL school).
My only big concern with taking the bus now is gross anatomy (which is said to be everyday during the first year), I'd want a shower before endulging in one hour of public transportation home, and I'm sure my fellow passenger would agree!