Thank you all for the suggestions!
I want the place for an initial three months. I am hopeful to find a job in that time frame and move near work (and be able to share a flat with an ex-flatmate that is living in London).
I know it's a very low budget for London, but since I can't relay on the idea of finding a job soon, I need to be precocious and be prepared for the worse. That means looking after my savings like there is no tomorrow.
I can only spend 350 per month in rent + bills, but nothing beyond that or I will have to find a proper job in less then 2 months. Which I think is a bit unrealistic on how things are at the moment (job market). The travelcard is about 141 per month, so yes, I do agree is expensive to commute. I used to live in Leeds... I really wish I could go back, but career-wise, is better to start jobhunting in London.
I have found that couples, or single moms advertise cheap rooms in gumtree. I really don't mind both, so might give it a try (they are mostly in zones 3 & 4). Roomsharing, is a no-no, the last time I had to share a room I was 5 years old!!! (been living by own for 11 years).
Oh well, guess I will have to forget about nice areas for now and star focussing on not so doggy ones
Man... I am getting the big blues!