A recent opportunity has presented itself. I could move the wife and two young kids to Paducah for a job that pays well.  We have always lived in the western U.S. Is it safe? If I buy a house will I be able to sell it in a year or two? What parts of town should I avoid living in? Is the county NFA friendly? What is there to do there for fun?  Is there public hunting and shooting opportunities?

Safe?   As far as towns of any size go, it is extremely safe.  
Turn over of property varies.  
The STATE is NFA friendly.   (What is this county crap?)
There isn't a lot to do for fun, if you are some city sissy.   There is some great fishing in the rivers and of course Kentucky lake and Lake Barkley.   There is all sorts of hunting.   The eastern part of the state has better hiking and also offers elk hunting.

You do realize this is Kentucky, right?   So far, they questions are like, does CO have any mountains, pot heads, or liberals?   LOL!

My in-laws live near Paducah.

You mad, Bro? Based on the reply I got I should have clarified I guess...does the County Sheriff support NFA ownership and sign off as the CLEO, are there hiking trails/public land near town, etc...are there a lot of break-ins/robberies,etc in any certain part of town.

Not Mad.    Just being silly.    Sorry if it came off otherwise.  
While I go the trust route so that family can have my stuff anytime, we have a state law requiring NFA sign off.

There is hiking, but it is very tame.   The hunting and fishing is great.       The best hiking is in the south eastern part of the state.

I am sure there are some higher crime  areas to be found, if you go looking for them.    But, generally, it is a big town in the middle of a bunch of country folk.    It is nothing like being in a big city.   Likewise, the nightlife is next to nil.  That is fine by me.    The local cuisine is fairly limited compared to big cities.    

You can find strange people anywhere, even  in TN, VA, and KY.    (People would don't fit the profile of the region.   For  example,  a punk rocker "sissy" at a eastern KY quickie mart hang out.)     I have seen some strange people in eastern KY who surprised even me.      But, that part of western KY is pretty tame, though there will be some strange folk everywhere you go.

I guess the best bet is to post to what area you plan to move.   Some local can give details on the specific area.

I have noticed there are a lot of pentecostals in the area.    There is a higher concentration there than in other parts of the state.    It is almost like going to some area known for the Amish.  (Real Amish, like for food and crafts.)   They are everywhere  around Paducah.

For fun, if you're into roller derby they have a very strong team there, plus a junior league for the boys & girls to skate in.

Don't forget the quilting museum! woo hoo that thar place is a hoot and a hollar.

A cop buddy of mine told me Paducah got rid of most of it's low income/subsidized housing and with it a lot of the crime from the area. Not sure how true that still is, but if so it sounds like a good place to me.

That would certainly do it.     Nothing promotes crime qutie like low income/subsidized housing.    

Lone Oak or Marshall County. If Marshall Co. Sharpe area would be closest to Paducah.

Actually, if you have family there, you probably know it is very much a "small town" area where everyone knows everyone else.    

I would rather live there than Louisville, but I spend a lot of my time (too much) Louisville since I work there.  

I have a place in Louisville, Northern Ky, Eastern Ky, and Western Ky.   Given my choices, I would sell the place in Louisville and never look back.   For me, being in Louisville is nothing but work and a place to crash.   Northern Ky, up by Joker is wonderful but can have a bit too much government influence at times..    Eastern Ky is beautiful but remote and everything is extremely time consuming to do (shopping, doctor, and so on).     Western Ky seems to have a nice balance.    If you are into boating, Western Ky is the place to be.