Okay Steely, here are some of my suggestions for Sydney.
Beaches: Well from Edgecliff you will be close to Bondi, and so you will probably go there. It is a tourist haven and crowded. But the Bondi to Bronte walk is very nice. Coogee and a Maroubra beaches are also close. But the northern beaches are where it is at. Take the ferry from Circular Quay to Manly, and if you have the chance check out the other beaches like Freshwater and Curl Curl.
Sydney Harbour: The harbour bridge climb is a little pricey but worthwhile and really well done. Time it so that you will be at the top at sunset. Also, take the ferry to McMahon's Point where I was living to enjoy the best view in the entire city, and from there you can walk along the harbour to Milson's Point, the bridge, and Kirribilli.
Nightlife: Well you will be near the (in)famous King's Cross, so you will have to check that out. There are good bars all over the city, but you may want to check out the areas of Surry Hills, Newtown, Balmain, and especially The Rocks. In The Rocks check out Lowenbrau, The Argyle, in the CBD visit Art House or Zeta bar, and in Darling Harbour/King Street Wharf go to Loft or Cargo bar.
Attractions: Taronga Zoo is a nice ferry ride from the city, although the rival new Sydney Wildlife World is right in Darling Harbour. The Sydney Aquarium is next door to Wildlife World and is interesting. Otherwise there isn't much else in the city really worth paying for admission for.
Further afield: The Blue Mountains are lovely, and best enjoyed if you can arrange to go on a hike. There are plenty of day tours from the city which stop at Featherdale wildlife park on the way up. I hate toursity tours but the stop at Featherdale is worth it because you can pet all of the animals like koalas and wombats, and spend as much time as you want feeding and petting kangaroos.
The areas north of Sydney are also stunning. The Hawkesbury river is beautiful although I have only just driven through it. A little bit further and you are in the Hunter Valley wine region which is serene and near to my heart. Unlike the wineries elsewhere in Australia at the Barossa and Margaret River, Hunter Valley has some 'mountains' which add to the setting. Wine tours are a lot of fun, and the wines are great.
As for Melbourne, I can't give you many tips other than check out Federation Square, the laneways for trendy shops, ride the tramway, and go check out Captain Cook's house in the park.
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