I lived next to the runway for about an year. I can actually seem the apartment from some of the photos. It was an interesting place.
It's really just after the border with Spain so if you stay in the country you don't need to cross it every day, but more people work in Gib than live so there is quite a good amount of traffic.
As with most things, you get used to it and it just becomes normal very quickly. The best thing was probably the fact that "I'll pick you up at the airport" is a 5 minutes affair rather than a few hour.
Another interesting sight of Gibraltar is the Sunborn Hotel, which is pretty much ship without motor that acts as hotel/casino.