I.M.
Well,
this all depends on how much money you have to spend. I live in Union and it is a good town. If you are looking for a good place to live with excellent school system it's up in Bernardsville. I checked them out when we were looking for a home but their prices were a little too high for us. You can also go south, they have a good school system as well.
There are a lot of nice places in NJ, up west the towns are nice and the school system is great.
Hope this helps a little. :)