I just get my grant paid into my normal student account, which hasn't been a problem.
What are you doing on your year abroad? If you're going to be at a university, then you'll need to get your grant and loan to your French account somehow, and I don't know how you do that. If you're working as an assistant, other than the first month until you get paid, you probably won't need to touch your grant and loan at all while you're in France. I've only used my English money when I've been at home in the holidays, to order Christmas presents online, and recently to buy a laptop when mine broke. Other than that, I've been living off my assistant's pay, which goes straight into my French account.
Not really sure about the French banks. I'm with Credit Agricole, and can't say I've had any problems, but I don't know if other ones are better. I think pretty much all banks here charge you for your account, which is annoying. I get charged something like 2 euros a month. My mum told me she thinks the post office bank account doesn't charge you, but I don't know if that's true.
I'm not sure how much bank transfers are, as I've not done one yet. When I opened my French account, I just drew a few hundred euros out of an ATM with my English card, and paid it into my French account. I think that cost 4 euros, in bank charges from the English bank. So that's always an option when you first get here.
I'd just set up your account when you get there. That's what I did, and it wasn't a problem. The first week will be pretty mental, with setting up a bank account, getting a French mobile phone, sorting out accomodation, internet etc. After that, things calm down. Expect massive amounts of bureaucracy - the French love it.
The grant really depends on your university, rather than anything else, so there's no telling what time it'll come in. Mine was a lot earlier than James' - it came in on the 24th October.