If you are looking for somewhere cheap to live near the city you want to look in:
St Kilda,
Melbourne cause Melbourne covers Queens Road (pretty cheap living!)
Check out www.domain.com.au or www.realestate.com.au
Things to check out...
During the day:
Try and get up to the Yarra Valley and do a Vineyard tour ... its gorgeous they have buses that to wicked tours
Take a bus tour down the great ocean road... again very pretty!
St Kilda Markets on Sunday are nice
Queen Victoria Markets are open most week days
Check out www.citysearch.com.au... melbourne... theres heaps of info!