Translation:The town where I used to live was much better than this one.
It's definitely masculine prepositional. Remember, the base word который is formed with adjectival endings, not noun endings.
Acc. Inan. который
Acc. Anim. которого
IN this dictation exercise, I was doing just fine - not as fast as the speaker, but getting the words - when I was marked wrong for not completing the sentence fast enough.
Seems like there's a time-limit on dictation, and it seems as if it's not set to account for longer sentences. That should be corrected. If there's one set time for every dictation exercise, the programming should be adjusted, either to allow for more time on every exercise, or to vary the allowed time according to the length of the sentences.
Simply mimicking what I think I hear usually produces a certain amount of Russian gibberish. I don't know what I'm saying, I'm just making noises. There's no connection between my mouth and my brain, at least not in a language-oriented way. It's just meaningless noise.