Sydney: Where to stay/what to do

Sooo...i'm planning on going to Sydney in early November. I'll definately be staying at a backpacker's hostel, mostly due to the fact that they're cheaper than a hotel/motel room, and because they're better for socialising...i'll meet more people than i otherwise would staying at a hotel.

EDIT: There's been a slight, well, huge change in plans, mostly because from what i hear Kings Cross is a pretty dodgy area. Anyhoo i've been doing some research on hostels around the main area of Sydney, and i've found one that looks to be pretty good, called Wake Up! (www.wakeup.com.au)...its received pretty favourable reviews on lonelyplanet and HostelWorld and it appears to be pretty good value for money, i was just wondering, has anyone stayed there, and how good is it?

As for going places, i'm mostly thinking of doing the usual touristy things during the day, like sightseeing and stuff, and then heading out to the bars and pubs and stuff at night. Anyone got any reccommendations as far as that goes?

Thanks in advance