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Hi Joe,
I have been in Shanghai for one month now and we are trying to work out which district to pick to live in too.
Firstly know where you will be working and what metro line or bus stop is close by. From there, I would suggest living somewhere on that metro line or bus route so you do not need to change lines or buses. (especially at Peoples Square).  Changing metro lines is ok, but if you can avoid it, why not and only deal with the peak hour crush on your line as well as saving time by not changing Lines.
Also, I would take into consideration if there is an expat community within that district. Not just for networking, but also it means shopping is better for an expat and the shops will be more used to dealing with expats. Unfortunately most of the expat areas are on the expensive side for renting (eg Former French Concession).
If you can take your time and visit different areas that interest you and get a feel for what they offer as some areas are definitely nicer than others.
I think it would be very difficult to pin down an area without having arrived. Just allow yourself time when you get here to be able to do the leg work.
Good luck