I must say they've done a great job with the transit, although it's a bit difficult to find information/maps. Once done, though, it's great. They offer a one-week pass that covers all buses and subways and even most of the ferries!! There are many ferry routes that run all over the harbour. We hopped on one this afternoon and took a quick ride around part of the harbour. More pictures on that later.

Turning 180 degrees from the above shot, gives this one: the wonderfully massive Art Deco building that is the Museum of Contemporary Art.
Just past the Museum of Contemporary Art, we find Colin with his friend, Captain William Bligh of HMS Bounty fame.

Just past the statue of Colin (I mean, Captain Bligh), is Cadman's Cottage, built in 1816, is Sydney's oldest surviving house.

We've turned away from the harbour and have started climbing the hilly streets of The Rocks. Here's the Hero of Waterloo, Sydney's oldest pub still in it's original location since 1843. There are a couple of pubs around that have had licenses longer but both of them have changed location.
Taking a break from our walking tour. Cheers from The Hero of Waterloo!
Observatory Hill, site of the original colony's first windmill, now home to the Sydney Observatory.
A couple of views from Observatory Hill:
Colin and I have been quite amazed at the culture of physical fitness in Sydney. While we were huffing and puffing our way up Observatory Hill we were passed numerous times by groups of lithe, limber bodies sprinting up and down the hill. The picture of Colin and the view of the city were taken from a wooden gazebo just below the crest of the hill. Below the gazebo is a wide lawn that extends down the hill a bit and this was covered in people doing calesthenics, kick boxing, yoga, etc. etc. All this on a Tuesday morning? Doesn't anyone work? Seriously, though, lots and lots of seriously in-shape people. Haven't seen a single lard-arse yet (apart from tourists, and then there haven't been that many, present company excepted!).
Heading back down Observatory Hill via Argyle Street. This is known as the Argyle Cut and is really quite nice with all the big overhanging trees. It leads back down to the rest of the Rocks and the ferry docks at Circular Quay.
After lunch at the Loewenbrau Bar (serving Lowenbrau beer, of course!) we toddled back over to the ferry docks and hopped on a ferry. Most of the ferries, as I mentioned earlier, are included with the weekly transit pass, and it's just brilliant, if you ask me. Very tourist friendly is Sydney!
A couple of great shots by Colin of the Harbour Bridge and the Opera House: