Ok so now I feel like a total IDIOT!! When I was entering the $700 USD I thought I was entering hte "pounds" symbol!!! WOOOOOOWWWW Now I feel dumb!!!! LOL
Ahh, no wonder we got confused, lol. Even so, £700 a month for a house is definitely on the low side in the UK (and Bristol is not a very cheap city to live in compared to other parts of the country). If you want a fairly decent house in a relatively safe area, you'll still be looking at around £1,000 a month upwards - for example, the houses you saw for £700 a month are likely to be very small (barely enough room for a double bed in the bedrooms, let alone any other furniture), falling apart (cracks in the walls, mold, poor insulation, thin walls, no double glazing etc.) and will be in not-so-great neighbourhoods.
Ok this makes more sense now LOL, it is very helpful to have someone who lives in the area to ask I see on the maps that certain places are 10-15 miles from the Uni and here that's nothing considering my Uni here is about an hour commute one way (55 miles) so when I see 10-15 miles from town I often think that is nothing considering people drive EVERYWHERE in the US.
I guess this is the main difference - driving is not such a big thing in the UK and is usually more inconvenient than in the US. We're very small so 55 miles is a long way in the UK and the commute would likely be a b*tch. There's also the cost of commuting to consider as well. I was considering doing my masters in London at one point and since it's only a 90-minute train journey from Bristol, I thought about living with my parents and commuting to London each day (to save money)... that was until we inquired about the price of an annual train ticket... £9,000

!!! It would have been cheaper just to move to London.
So, I went to Bristol University and lived 15 miles away - I had to leave at 7am every day to get to a 9am class... why? Because if I left at 7.30am (or later), the traffic would be so bad that the journey would take me an hour or more instead of 25 minutes and if I arrived in Bristol any later than 7.45am, there would be no free parking spaces left within a mile of the university. Parking is very bad in that area of Bristol - the university has no parking lots and the majority of the roads around the department buildings have metered parking or are permit only. As a result you have to find small residential roads to park on, but as there are only a handful of roads available and hundreds of cars looking for a space, you have to get there early. Not to mention the cost of gas to drive there in the first place (currently about $8 a gallon)! I also used to have to park nearly a mile from the university and then walk for 15-20 minutes to get to my department.
However, there is plenty of housing within 1-2 miles of the university and it would probably end up cheaper to pay a bit more for rent and walk/cycle in than to live somewhere cheaper further away and pay to commute.
I agree though I would so much rather live close to the Uni and be able to bike or walk to classes and work. Since my husband and I won't have a car this would work well for us if we find a place close to town, we don't want to live in a bad area that's for sure!!
The best areas for Bristol Uni students are Cotham, Redland, Clifton and maybe Kingsdown or Bishopston (but I'd avoid the Gloucester Road area if possible). Further afield, Henleaze and Westbury-on-Trym are nice, but would probably involve a bus ride as walking to the university would take you over an hour from there (or you could cycle, but be warned, there are some fairly big hills to tackle!).
We recently were in London and Bristol visiting the areas and did not see a lot of Costcos, Walmarts or Home Depots so it's good to know that there will be places we are familiar with around so we can buy home sruff 
There are only about 22 Costco stores in the entire UK, but luckily there is one in Bristol (in Avonmouth)

. If you have a US Costco card, then I believe it will allow you to use Costco in the UK.
A few years ago Walmart took over the UK supermarket ASDA, and the first ever ASDA-Walmart supercentre in England was opened in Bristol about 9 or 10 years ago (it's the one I mentioned near the out-of-town shopping mall). There are also 4 regular ASDA supermarkets and one ADSA Living store in Bristol too. In fact, the George clothing range at ASDA is British... it was being sold in the UK for 10 years before Walmart had anything to do with it.
As Becca said, B&Q is very similar to Home Depot (again in Bristol there is a massive B&Q next to ASDA-Walmart and the shopping mall) - it even has almost the same logo, despite the 2 companies not being related at all

.