L.
I live in Oakdale, which is a suburb between Stillwater and Woodbury. We moved here almost four years ago from San Diego. I love living here! Woodbury is a relatively new suburb and it's very family friendly. (I think it was acutally voted as the best or second best city to raise a family by Money magazine a couple years ago.) I don't know a lot about the elementary schools in the area yet (I have a 2-year old), but MN public schools generally have a good reputation. I would recommend checking out the woodbury website (http://www.ci.woodbury.mn.us/). Stillwater is also really nice, but in a more rural setting. Stillwater is a popular place to visit on the weekends -- has a historic mainstreet with a lot of cute stores, and river boat tours along the St. Croix. The only drawback to living in these suburbs would be the commute (if you're working in Minneapolis). During rush hour, the commute is about 45 min - 1 hr. (Otherwise, it's about 20 minutes to Minneapolis, 10 minutes to St. Paul.) Hope this helps!
-L.