I can vouch for other people's vote for Madison, WI. I just moved here a few months ago after a brief stint in Richmond, VA, and a life in (or near) Chicago.
I am really enjoying the vibe of this often forgotten city, and and really impressed with how diverse the terrain is in the state (considering its the midwest).
I've met some guys from a video game startup, and a good number of people from the big software company in town EPIC.
Certainly the cost of living here is pretty fantastically reasonable. I bought my first house here!
email me or message me on skype (same as my name on here) if you care to learn more about Madison :-)
I'm actually looking to start a Jelly or something here, so I can try meet other entrepreneurs.
Good Luck!
I'd love to meet bilbo or anyone else here in Madison :-)
Is it just me... or did the first movie do disservice to the book's story - only to be topped by Tom Hanks disgracing his own reputation as a quality actor?
(caveat: another barrier is work experience and GMAT score to determine what "level of prestige" school you can get your MBA from)