Over the moon living around outskirts of Ullapool (8)
I believe the answer is:
exultant
'over the moon' is the definition.
(I've seen this in another clue)
'living around outskirts of ullapool' is the wordplay.
'living' becomes 'extant' (similar in meaning).
'around' is an insertion indicator.
'outskirts of' says to hollow out the word (remove centre letters) (only letters on the outskirts).
'ullapool' with its centre taken out is 'ul'.
'extant' enclosing 'ul' is 'EXULTANT'.
(Other definitions for exultant that I've seen before include "really happy" , "Rejoicing greatly, delighted" , "Jubilant, rejoicing greatly" , "In jubilant mood, rejoicing" , "Triumphantly elated" .)