After looking at some helpful websites given to me by Fodorites, I have been weighing up various locations.

I have found a nice looking apartment in Woolloomooloo (How do you pronounce this ?)
The description reads "The most well known landmark in the area is Harry Cafe de Wheels,
Nearby Kings Cross, buzzes with nightlife, live music and adult entertainment."

Is this a euphemism for "Slap bang in the middle of the red light district" ?

Most of the hotels offered by travel agents were in the Darling Harbour region, and I am woundering if I should concentrate on that area. Any suggestions as to other areas would be welcome (my budget for accomodation would be A$1200 - 1500 for the week.

Wool loo ma (as in map) loo.
Used to be a run down, but is very smart now with Russell Crowe and I think Nicole owning apartments in that area. Right on the waterfront and a fantastic location, but could be noisy as a lot of traffic goes through that area. Darling Harbour is excellent with many restaurants and hotels. A short walk to everything with the added bonus of the monrail. Also site for many indoor sports during 2000 Olympics.
Harry's Cafe de Wheels is an all night meat pie and fast food caravan that has been stationed at the 'Loo ( as locals call it) for absolute yonks. There are much classier places to eat believe me, but it is an experience. The Cross is about a 15 min. walk up the hill from the 'Loo. I would go for Darling Harbour as a much more convenient area.

Pronounce Wooloomooloo as it is written but with the emphasis on the last "loo". The first "loo" and "moo" are not strongly emphasised and come out sounding more like "uh". Hope that makes some kind of sense! Alternatively, you may hear the suburb referred to as "the Loo"
As to your second question, Wooloomooloo is on the edge of Kings Cross and would not be a red light area but the Cross itself features protitutes and a vibrant drug culture as well as some more upmarket venues. I think you may be happier in the Darling Harbour area. Good luck!

By the way where is the apartment in Wooloomooloo?

WOOL-um-uh-LOO. Once you've mastered that, try Goonoo Goonoo (Gunna g'noo). But don't feel obliged to go there.

or boonoo boonoo - feel free to be obliged to go there - its a very nice national park up near tenterfield!

I really like that area. You can walk to the CBD and you are near wonderful suburbs like Surry Hills and Paddington plus it's also on the way to Bondi, Tamarana, and Bronte. Darling Harbour seemed so touristy to me and not as residential. Kings Cross is nearby and is more likely the "red light district" but you will not be right in that area and up the road from Kings Cross is Potts Point, which is lovely, safe, and has great restaurants.

Woolo is quite cut off from everything, including mass transit and even from Kings Cross (which is up very steep hill). You can walk to the gardens to connect with the rest of the "real world", although I seem to remember only one obscure stairway allows you to do this without a lot of exposure to hills or freeways. It used to be a creepy place, vacant except for that revolting (to a vegetarian) meat mush stand, but I guess it is gentrifing a bit.

Darling area is a bit tourist tickytack, but VERY handy to everything. Also nice to be on one of the grassy parks. Next time I may consider Double Bay, which is always pushing luxury places cheap. Also a bit inconvenient, but nice local eats/shops and enjoyable means of transpo (ferry).

Thanks again for all the advice - I feel much happier about considering the location and apartment. One of the apartments I was considering was this one : http://www.stayz.com.au/20207

I will aso look at Double Bay. In terms of ferries as transport, is there any sort of "weekly ticket" ? ands also , how late would they run? Does anybody know a site for timetables etc (Apologies for the last, I am being lazy in not googling).

Thanks again

Also Habourside Apartments www.harboursideapartments.com are in a great position with spectacular views. Many restaurants etc. in North Sydney and a quick ferry ride to Circular Quay.

http://www.sydneyferries.info/