Yeah - I live here and park there. There is one permit that covers spots on both the North and South side, but the South side is split between permit spaces and daily parking which costs $5 per day, and you can pay at the machines. The North side only has permit spaces, and daily parking is not available. So, if you have a permit, you can park on either side in any of the yellow spaces.
And it's first come, first serve. So a permit doesn't guarantee a spot, but I've arrived at 8:00am many times and can usually get a spot on the North side.

Ah police station website says the following which leads me to believe that you must specify. I'd call the PD to make sure.

Location: Railroad Station (BOTH SIDES)
North Avenue Side - Yearly PERMIT PARKING ONLY - All Stalls
South Avenue Side - Yearly Permits in Yellow Stalls Only
(Permit Numbers DO NOT Designate Stall Numbers)
South Avenue Side - Daily Parking in White Stalls before 10:00 A.M. (All other times, any numbered stall)

Fanwood permits can be used on either side of the tracks. No need to specify.

Matthew I just found this on craigslist, a Fanwood train station parking permit for $150, you may want to look into it. Way below cost and available now http://cnj.craigslist.org/tix/1181122488.html (Do your own checking to see if this is a valid permit and the cost etc., I know nothing about this ad or its validity)

Or you can call and check for cost and availability directly with the Fanwood police for train station parking permits here http://www.fanwoodpolice.com/parking_permits1.htm

Residence usually get a substantial price advantage, also you should know what side of the tracks you want the permit for.

Matthew,

One thing to consider is that Fanwood covers a relatively small geographical area.
There are many homes that are within a half mile or so of the station. Many commuters
walk to the station, while others get dropped off in the morning and then walk back home
in the evening. True, Westfield does typically have a wait-list, but again, there are homes
that are within a half-mile or so of the station. Going eastward along this same train line
(the Raritan Valley Line), is Cranford. Cranford recently built a new parking garage and therefore
getting a space should be easier -- though, again, many homes lie within a half mile of the station.

Please contact me for more information on these towns -- they are very popular with NYC
commuters and all have well-regarded school systems.

Marilyn Holda-Fleck
Prudential NJ Properties
Marilyn.Holda-Fleck@PrudentialnewJersey.com
Cell: 908-456-0779

Not sure about the buses, but the parking situation at Fanwood isn't bad.
They re-sell parking passes every year, starting around October 1 or November 1 (not sure) for Fanwood residents only. About 2 weeks later, they open it up to Scotch Plains residents and everyone else. But I'm pretty sure there is always a good amount available for the Scotch Plains residents before they sell out.
You could potentially purchase one from someone who has it and doesn't need it by posting at the train station. I do believe they sell out every year, but it doesn't hurt to contact the Fanwood police station and they can give you more details. So, even if you don't have one for 2009, you can easily get one for 2010 just by purchasing one when they go on sale. And there is daily fee parking on the south side for $5 per day.
Other towns do have long wait lists. We once considered Westfield and their police station said it was a minimum of 3 years on a list just to get a permit at a lot blocks away from the train and about 5 - 7 years to get the lot at the station.