I posted these to another forum (Skyscrapercity) on how you could go about reusing the old Pudsey railway line and this is the best I can do with the smallest amount of demolition involved. I also think if this were to happen a lot of the crossings would be level with the road rather than dug down into it's previous cutting and all the new bridges that would require.
Section 1. There would be 4 detached houses to demolish to get the line through here. Rather stupidly these were built relatively recently (in the past decade I believe) but there just isn't another way though here. The large empty area adjacent to Lowtown seems a good spot to site the first stop.
Section 2. Again looking to minimal demolition I think you could get the line down the centre of the sheltered housing estate with the addition of two new access roads. Some land would then need to be taken from the top of the allotments and a garage would be lost. There would then be 3 flats/houses buildings that would realistically have to be demolished. The green space to the right is currently having new houses built on it so that can't be used.
Section 3. This is an easy run along the existing railway to Robin Lane. I'm not sure how frequent you would want stations but certainly potential for a station here which is the closest to the town centre.
Section 4. This is again a nice easy run. I can't see them digging out the previous cutting so there would be some sections where the trams crossed the road, or some roads could be split so no traffic crosses the trams path.
Section 5. You should just be able to squeeze in the line in a gap just to the north of the sheltered housing to the east here. The warehouse building shown here would need to be demolished and we have our third stop on the site of the former Pudsey Greenside station. The line then descends under the Carlisle Road bridge and into Greenside tunnel towards Tyersal which I would expect to be the next stop.
It's certainly ambitious, and I can see a lot of opposition from those who would be affected, but conversely I can also see a lot of support and it's a better option than plowing down existing roads full of traffic and serves a town of 30k+ which currently has limited transport options. You have the added benefit of land that would be activated for development around Tyersal and down Bowling Back Lane towards the centre of Bradford. It's also a much quieter route in than going down Leeds Road traffic wise.
It can also be argued that the existing railway with New Pudsey station, Bramley station (and maybe with a reopened Stannningley station midway) already serve the corridor along Stanningley Road adequately without the need for an adjacent tram line that would largely be duplicating it.