Linda,
Austin is a great place to live! I was born and raised here in Austin. I lived in Dallas for two years to go to school and had to move back! I would not want to live anywhere else.
It is true that the traffic is awful, housing costs are pretty high (but I understand that is getting better...) I think the roads were built way back when Austin was a relatively small city so there seems to always be construction. The city transportation department is constantly trying to rebuild the roads to accomodate all the people here now. Austin has grown A LOT in the past 10-15 years. However, it is very laid back and somewhat of a "hippie" town (I mean that in a good way!)
It's true there's lots to do and beautiful scenery. If you enjoy running, there are lots of trails especially the popular Town Lake which includes several trails of approximately 20+ miles around the lake.
If you want ideas of sights to see or places to visit while you check Austin out, let me know and I can send you some info.
By the way, I completely agree with Christina regarding Austin schools. My son goes to a school in the Pflugerville district which is one of the highest rated school districts. Pflugerville is a small suburb north of Austin (where we currently live) that is very safe (in my opinion). Cedar Park and Round Rock are good areas also.