For shopping I guess it depends what you're after'. Glebe markets and Paddington markets are my pick of the markets.
Birkenhead point has lots of factory outlets.
I'm a bit of a midget so I like the shops in Chinatown because it's easier to find something to fit me. There's a paddy's market in Chinatown too and lots of places serving Yum-cha fro breakfast.
Oxford st around Paddington has some nice boutiques and also the area around the Crown st/Oxford st intersection in Darlinghurst has some nice shopping.
King st in Newtown if you're after some less mainstream shops.
The city of course, Pitt St mall and around.....
I dunno about places to stay, just so long as it's near public transport it should be ok. Wotif has a search option where you can select accomodation type so that might narrow it down for you.


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