The N/S switch will be for what hemisphere you are in, so leave it on S for the southern hemisphere, no matter where you are pointing it in the sky.
I'm not sure on exact lat/long of Sydney but that sounds about right, and yes, you would set your altitude of your mount to that (the angle at which it points up at the sky).
If you level the mount reasonably acurately (the base of it being nice and flat), then angle the altitude up at 34 degrees, then use a compas to get it pointing roughly south, you should be well in the right ballpark area for tracking the sky, for just visual observations.
Beyond that, you can get more complex with more accurate alignment techniques, but I doubt you need to do that at this stage.
Hope that helps