How far, long will US $25,000 last in Montevideo

you can try the b&b we stayed in while in Montevideo.  they had students living there.  just a couple of blocks from the university.  Named Una Noche Mas, they have a website.  Eduardo is the owner, nice guy.  good luck with your wonderful opportunity!

First of all, congratulations on your scholarship!
I have a 1-bedroom furnished apartment on Avenida Brasil (Pocitos) a short walk from the beach. It's on craigslist if you are interested: http://montevideo.en.craigslist.org/vac/1596151800.html
There are less expensive options in town, of course. The Centre and the Cordon area (where the university is located) are both cheaper than, for instance, Pocitos and Punta Carretas. Wherever you stay, make sure that there is sufficient heating in the winter months

Congrats on your scholorship! I lived in Montevideo for a few months back in 2008 and loved it. If you are as you say, not high maintenance, you will find that 25k will go far. Housing is relatively cheap especially the farther that you live from the Rambla (water front road). Locate the Sheraton hotel in Montevideo and look out from there. It is a fairly safe area, always be smart, though, as you would anywhere else. Food is cheap at the markets and eating out can be equally cheap. Try La Perdiz restaraunt, anyone in the area should be able to help you find it. Great steaks and wine (try the Tannat wine!).
This will be a wonderful experience for you and I may be able to provide you some contacts for other americans in the area as well.
Sean

with 25k you can live here like a VIP persson for more then a year but if you are normal and simple more then 2 years.between food and rent you would need 600us x months so you will have 400 for the other things such as clothing,movies,transportation,etc. it will be more then enough.