Non-pro answer here. Before I give my 2 cents I am going to second the poster who mentioned Linden Hills and Old Edina. That is my favorite part of the city. You would find a nice house in that price range there. Crime is pretty non-existent.
Now for my 2 cents....I am quite surprised no one has recommended St Louis Park. It is right next to Golden Valley...and is very close to the lakes and uptown Minneapolis and all the coffee shops and bike paths you will need. 400-600 will get you a very nice house there (on the upper end) closer to the lakes which is the nicer part. Much of St Louis park is pretty average and houses are smaller...but the the Minikahda Vista and Browndale neighborhoods on the map below are very nice.
http://www.stlouispark.org/pdf/neighmap.pdf
They are about a 10 minute bikeride to the lake and uptown and there is virtually no crime there either.
- Tue Jul 8 2008, 19:48