Ok, well based upon your responses and trip reports, I realized that there is soooo much in Australia that despite my initial thoughts that this was a one-time trip, I can't see how I won't be able to return. Concluding thus, my fiance and I came up with a revised itinerary:

Nov. 5-9 Sydney (Sir Stamford)
Nov. 9-12 Sydney (The Russell)
Nov. 12-14 Uluru (Pioneer)
Nov. 14-19 Palm Cove (Sebel Reef)
Nov. 19-21 Brisbane (TBD)

I'm still a little uncertain about whether to stay overnight at Carrington in Blue Mountains, but so many people seem to say that daytrip is enough. I guess that we can always change our minds later.

Thanks everyone. If anyone has any additional comments or suggestions, I will continue checking the post and as always would certainly be appreciative.

I'll be sure to write a trip report upon return.

Chad we stayed at lillianfels in the blue mountains for 2 nights. Whilst the hotel was nice i was bored out of my mind asfter the 1st night. We went to some of the nice towns Leura to name one, wenworth falls , did the 3 sisters thing, went to scenic world.All of which i REALLY enjoyed but 2 nights was way too much. Katoomba is not very nice.
I suggest you make a full day of it hire a car (or go by train ) and try and do the lot in a (long) day or if you must do 1 night but as others have said you waste time moving from one place to the other.

Smea - you are right up to a point. One day in the Blue Mts is enough if you wish to hop from place to place by car and never have to walk much.

But (and speaking as an occasional walker only) the thing to do in the Blue Mts is WALK. One of the easy ones will do. Unforgettable.

Thanks for continuing the thread Afterall and Smeagol, I think that a lot of people have these same questions.

My initial impetus for staying overnight was to see the caves. I've always wanted to check out some caves and really never have, but it doesn't seem that most posters thought very much of them.

Chad
If you have always wanted to see the caves then maybe you should. Just because it isn't for everyone it may be for you. Maybe you should split the difference and stay one night. It is a lovely place to walk but i was disappointed with Katoomba (and the weather-15c in summer!!!) that said we enjoyed the things we did, just wished we had done either one night or a day trip.