We've lived near Nambucca St for over 10 years and we love it. For us it's the nicest part of the peninsula. Very little through traffic; quiet and peaceful; 6 minutes on the bus to Woy Woy station. Whenever I end up down near Blackwall Drive in a traffic jam I wonder why I got out of Sydney (same goes for Ocean Beach Drive). Of course there are some colourful characters, but all in all there are mostly good honest people who have lived in the area for years.
I would not personally live on the Southern Side of Woy Woy around Nambucca Drive and The Ocean Beach Road side of Woy Woy. Woy Woy towards the Blackwall Road side moving away from Ocean Beach Road and closer to the water is like chalk and cheese with the more housing commission side. In saying that, we have met great people on that side of the area as well, and there are very nice streets still on the southern side, just pick carefully.
Used to be common knowledge that around Nambucca St was a bit rough around the edges due to housing commission. A lot of the housing commission has now been moved and I've been told there is a lot less trouble (petty crime) around there now. There are undesirable pockets in most suburbs. My parents have lived near this street for many years and they are happy there.