I've been twice before, and was considering going again this year except I'm tied up with cricket finals...
First time I went general admission - used the first 3 days (don't bother going Thursday unless you really want to see the other cars race, but if you do, it's great to get right up into the supporter category paddocks) to find the best vantage point - which for us was on the exit of turn 2 on the hill and make sure you try to get there as soon as the gates open for Sunday.
Second-time round we were in the Fangio stand on the front straight opposite the pits. Was awesome to see how the teams prepare for each race, but after the start of each race it's a bit of a snooze as the cars just roar past every lap.
Anyway, as for things to do... Crown Casino is an awesome place to bum round when you've got time to kill. If you're into cafes and things, there's Laigon St. If you're into a bit of a nightlife, there's a few good places in the city - if you're dressed up enough, but there's many awesome small bars in the backstreets and laneways, always fun finding good ones. And there's also a few places around St. Kilda which are nice.
Either way, whatever you end up doing down there asides the race, you'll have an awesome time!
2010 B6 Passat 125TDI Black, leather, RNS510, boringly comfortable
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