Hi Missy

Have a look at http://www.kbv.org.au for some info on the location.

St Kilda is a popular spot as it is the closest to Melbourne and quite good for beginners.

The area which is used for the comps is regarded as the advanced area and is on the left hand sid of the beach, the water is shallow for about 30m with small chop/wavess depending usually on highor low tide. It works best in SW-SE and can be done in a W but is gusty. Hope this helps, I am still in the early stages of Kitesurfing so someone with more experience might have more info for you.

As for accomadation there should be some in St Kilda which is not to expencive and within walking distance. There is also the number 16 tram that goes right to the beach so you could get something on that line.