See the threads on cost of living - the consensus seems to be that cost of living is on the rise and that it is pretty tough for families to get by on one income. The current average salary is about 1400 Euros a month so you'll be above that at c1800 a month. Whether you'll be able to live comfortably on that depends on the size of the rent and how many kids you have, cars you run, whether you need services like private education etc.
Vets are expensive (see threads also on precuations on bringing pets to Cyprus and living safely with them). I'm afraid I can't answer the question about xbox 360or medication excemptions - the internet seems fine though, I shouldn't think they'll be problems.
Good luck...