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Aite well, in Swanston St, there's Central Station Records, pretty commercial atmosphere (in my humble opinion). Further down is Bourke St, where there's HMV, which has a dance section, and Sanity with is Dance Arena, both commercial, yet you can find some cool shit. Down beside Sanity is a little lane, walk down there and you'll come across Rhythm & Soul, which is a funky little store mainly focusing on house, but has alotta progressive house/trance. Really chill atmosphere and cool people 
Now in Chapel St, there's DMC Records on Commercial Rd (just off Chapel). This place is basically the centre of progressive in Melbourne. Lotsa cool cds/vinyls in there, and cool people. Down the back is a little room, catering for all things DnB. Further down Chapel is another Sanity, and One Stop DJ is down there as well?.. i dunno, seeing i've never been there, heheh :P
Like Astroboy said, check out Greville St which is off Chapel St. Tis a really nice street with a good atmosphere - not as hectic as Chapel. Lotsa nice cafes and there's Obese Records (for you're hiphoping needs) and another Rhythm & Soul + another cool store further down near the train line, although the name slips me 
That's on the music side of things, for clothes its pretty much walking around the main part of the city - the square of Flinders St, Elizabeth, Swanston and up around Bourke St (and further). Chapel St also has a shite load of clothes stores. A awesome road for clothes is Bridge Rd, which is a little out of the CBD.
Hope this helps a lil 
Ciao
Pointy
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