Oxford,MS
Oxford, MS home to both WIlliam Faulkner and John Grisham is the town where my university is. I lived there for 5 years and enjoyed the joys of small town life.
I could not put it better than how oxfordms.com puts it - "Oxford’s uniqueness captivates its visitors like a true Southern Classic. The town of Oxford is a vibrant University town filled with unique shops and galleries, eclectic restaurants and clubs, historic landmarks and comfortable inns."
Oxford has also been named by USA Today as one of the top six college towns in the nation and included in the Best 100 Small Towns in America as well.
More information about Oxford,MS on Wikipedia - http://en.wikipedia.org/wiki/Oxford,_Mississippi