We saw the little penguins south of Melbourne, on Phillip Island, so you could certainly see them on your Syd - Mel drive, with a bit of a swing south. Here's a map [URL=http://www.penguins.org.au/content.asp?pg=141 [/URL] . The website makes it sound more than a bit touristy, but we didn't find it so - it's well worth a trip, I think.