There are a number of great areas around here. I would stay away from Elk Grove. I have a friend who's a teacher there and the schools are a mess. Some schools are extremely overcrowded while others are almost empty. Natomas is another popular area, but you'd be moving into a flood plain (think New Orleans). They've also had trouble getting essential services built, despite all of the homes built there.
We're in Roseville and really like it. Excellent, well planned schools with solid test scores. No lotteries to get in. You just go to the office of your local school and sign up your kids. The school offices re-open in early August, I believe. Rocklin is another good area to consider. Both cities are in the hub of all of the new activity -- tons of shopping, kid activities, parks.
The best area is Granite Bay. Eddie Murphy once owned a home there. It's definitely the most expensive area in Sacramento and has the best schools.
I would find a good realtor who can point you in the right direction. You want someone who knows the area well. If you need a recommendation, just send me a private message and I'll pass along the name of the woman who helped us.