Hi jowel,

to IIS.
It certainly can be confusing trying to work out what the best scope to buy is, when you don't have any experience of looking through them.
I strongly advise you to attend one of the local astro clubs. They have viewing nights and you can look through lots of different scopes and question the owners as to their pro's and cons.
Here is a link to a list of NSW astro clubs so you can pick the one closest to you...
http://www.quasarastronomy.com.au/society.htm
The type of scope depends on whether you want to do astrophotography or just visual observing.
For visual observing, as the others have said, an 8" dob. is considered the basic piece of equipment. I have a 5" dob (because it was a gift), and it does me ok at the moment, but will want better views a little down the track when I have learned the sky better.
For astro photography you'll have to hear from those experiended in it.
A lot of people here use a site called Andrews Communications and they seem to have very competitave pricing...
http://www.andrewscom.com.au/site-section-10.htm
There is also Bintel...
http://www.bintel.com.au/
But like I said, try the local astro society first, it will be full of friendly and helpful people.