Most expats live either in a few expat havens in the city centre (mostly in or near Tianhe district). Also, some expat communities have sprung up further out, for example in Clifford Estates in Panyu. Have a look at Areas and Suburbs in Guangzhou for a more detailed breakdown of your choices.
There's also a list of international schools in Guangzhou you can investigate - given commute times, it is often a good idea to to pick a school first and decide where you want to live on the basis of that.
Good luck with your move :)
It depends. A one-bedroomed flat in Clifford Estates in Panyu will set you back between 600 US$ a month depending on whether it's furnished, the size, etc. Clifford estates is pretty big and one of the most popular estates in the city for its proximity to schools and the city centre.
Read about suburbs here: Areas and Suburbs in Guangzhou
Read more here: Accommodation in China
... and here are some listings:
You can now dowload the FREE 2012 Guangzhou Schools Guide from Expat Arrivals.
This is fantastic PDF guide to education and schools in Guangzhou includes all the information you need about the public school system in China, the difference between private and international school in China, tertiary education in China, homeschooling in China and some things to think about when you move to China with children.