Scott, no one can tell the "best" part to live in; what is "best" for one could be "worst" for someone else. It all depends on your needs. If you are able, take a drive/ride down here and take a look for yourself. TheThere are currently 29 houses available in that price range with 2BA+; if you are interested in taking a look I will be more than happy to email them to you.

In case you are curious the favored elementary schools are Willard and Ridge.
Avoid the main drags - Glen, Ridgewood Ave, Maple and Linwood(especially Linwood as that is where the ambulances going to Valley Hospital run).
If you search for houses that are off those streets then that is fine
Your main issue is going to be to find a house from which you can walk to the station as parking is not an option. you may find a space at the park and ride on Rte 17 but thats not certain.

Good thread. I'd like to hear more opinions on this too...

Well almost all of Ridgewood can be classified as "best part" with the possible exception of the small area east of Rte 17 which is a bit like an orphan cousin!
Some of the streets of East Ridgewood and Maple have some smaller houses that would suit your budget and be close enough to the train station to walk there (parking is a real problem.) I would avoid the south end of town for that reason although if you are prepared to use the park and ride on Rte 17 that might work too. There are small areas of the town that flood so be a little careful there.
People will tell you that its important to live in the areas covered by a couple of the elementary schools but the quality of all of them is pretty much the same.
Good luck