Lots of great places in Europe to live in... not just saying that cause I'm a "proud" European.
Places I've lived in... Ireland: brillinat country, kind people, weather is a bit of a problem and it's got extremely expensive!
Spain... lived in Madrid and some time in the south for many years. Wonderful people, yet their "extrovert and direct" nature can sometimes take a bit of getting used to. They tend to appear to be rude and unpolite (especially service wise) which offends many foreigners, but this is just at first, it's their culture and they just to say "thank you" and "please" as much as some of us do. Tax is low. Cost of living is quite low as well. Better off avoiding working for smaller companies there, not greatest conditions. Nice food. Extremely pretty women. In the centre and south it's INCREDIBLY hot in summer (45° C) about 118°F is quite normal there (in the sun). And winter can be really cold.
Switzerland... Expensive, fasinating place culturally: four different languages areas in such a small palce, French, German, Italian and Rhetoric (Romansch). Excellent standard of living. great skiing and incredible scenery. The people can be a little cold though.
France... currently in the south west of France (as my nick gives away). Absoloutely LOVE the place. The people (down this part of France anyway) are extremely friendly, kind and open. Scenery is unique. Climate is perfect. Food is, well how can I put it, it's just sooo French. Lots of beautiful women (and handsome men, I suppose, just in case you're a woman). Excellent standard of living, incredible social benefits and public health system (best in teh world). Vive la France!!!! (and I'm not French).
Now your point on being American... yeah they're may ahve been a bit of bad press about the Americans recently, but I think the vast majority of Europeans are just as fond of the Americans as anyone. Even though parts of the American press have hammered the French in a ridiculouse way just because
Président Chirac had the ba

to say, "No, we don't really agree with you Mr. Bush...", I don't think this has damaged the image of Americans here in France. If you do come over, just remember, you're no longer in USA and you'll be fine. Things are different over here, everything doesn't have to be the biggest of the best, and people like to take time to enjoy life (lots of holidays, slow dinners...). i know loads of Americans living here, and they all say how much they love living here and that they can't imagine returning home...
Good luck no matter what you do.