Our stay at Vania's place was quite enjoyable. She's a very nice person and gave us a lot of tips and indications about what we can do to make our stay in Lisbon more enjoyable. There are lots of public transport options nearby (tram, metro, bus) and some good restaurants.
One word of warning though is that you'll probably have to do a steep climb to get to it but I'd say that that's really a part of Lisbon in general and it makes for good exercise.