Hey business99! If you live an hour away from your closest university, and that university is the one your heart is set on, my opinion is that you should live in a residence. I'll try to list some pros and cons.

Pros: I would not want to waste two hours a day alone just on driving and besides, living in a dorm is one of the best ways to meet people outside of your program. In other words, its a great social experience for you and I'm sure you'll have a lot of fun. You might also need to devote a lot of time into staying at school (ie. clubs, night classes, jobs, etc.) so living close-by might also be a good idea.

Cons: Living in a residence is not cheap at all and for most people, it will make up the majority of their total university expeneses. Also, living in a dorm means that you are free from your parents (most likely for the first time) and thus, it is harder to maintain self-control. Its also harder to concentrate on school-work since there are always parties going on (except during the weeks before midterms and finals).

Another alternative you could consider is that you can organize a few of your friends (usually four is a good number) who may also be going to the same university and split the cost of renting a house that is close to campus. This may be more ideal if the house is in a smaller city. If you do consider this option, make sure the house is fully-furnished and everything you need comes with the rent.

Just my two cents ;)

I'm in the same situation as you too. I happen to be going to the university that's in my city, but I happen to live all the way across town and I'm probably going to be spending an hour and a half a day on commuting, but you can always car pool/hitch a ride from friends who have cars