I have been living in Dunedin for 6 months during my school exchange trip in 2003. And I really loved, or still love, the city! Even though it might be a little off the way for most of the people visiting New Zealand and the South Island, this place is really worth a visit! My best memory is watching the sun set from Signall Hill, a viewpoint above the city with a perfect view over the whole city towards the beach and the harbour. Totally recommended =)