(1) It's probably not enough time, but how much
time should we allow at:  the Holocaust Museum

the museum suggests 2 hours. When I went it took 5 hours, the German gentleman
I arrived with (a fellow tourist from the India House hostel) was gone in 3
hrs.

(4) Given the Australian dollar is worth 50cents
US, can anyone recommend convenient but reasonable (no, read cheap!)
accommodation?  We hear some areas are a bit unsafe.

I visited in march and stayed in the India House hostel it is barebones, but I
thought it was wonderful. You can get a bed for $15/night or if you book early
enough a room for 2 (or more) for $36/night. It is across the street from the
metro and I never felt unsafe. For details see http://www.dchostel.com/

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