I'd agree with wxyz for sure.
I'll be based there but will be commuting, so I am going to attempt to do thing's a bit differently, however I did take a reasonable look around last week and there are lot's of pretty sweet places for around about the 10000 Yuan mark in the French concession. Your employer should help you look around by attaching a real estate agent to you.
The expat communities are very good. I had some beers with a few guys at a pub in the FC during the All Blacks vs SA match a month ago and they made some very pertinent points. Mostly, everybody is there because they want to be, not because they have to be. This makes for a very positive atmosphere. The schools are first rate, and barring the pollution, which sucks, it's a great place for kids; or so the parents there told me. Long and short, you'll have a great time.
With locals anywhere you have to make the effort, then they're great. With the Middle East I used to hang around with the local pilots all the time; great bunch of guy's. The point was made that this wasn't the norm (by the GM to me), not in a bad way, he was just surprised. I have, so far, found that the better you treat people the better they treat you. The locals in Shanghai really like to have western friends, there's just that bit of a barrier you have to work through on your side.
The job for the English speaker; for your spouse? They should give you a work permit for your spouse as well, if not there is something wrong I think. My guy's do it for us. The cost of living is way lower than Hong Kong, so there is more action on the financial front these days; I would not think it difficult to get a job, and if you walk in with not only the qualifications in hand but also a work/residence visa, then I'd reckon it'd be no worries (more money than a pilot I would perhaps).
Have you been over yet, or spent any amount of time there? Wicked city, and huge. Lot's of boroughs and heaps of thing's to do, both western and Asian.