Thanks all for the help. I have been following the steps you all suggested including using the GPS locator (it didn't work). But none have worked.
I suppose it's how you look at geography. I'm not really interested in reflecting the administrative structure of the place names. I don't think this is as important in Australia as in other places. Very few records of interest are held at city level, but rather State level, so the administrative city doesn't really matter. And even if I was interested in recording suburb, city, state, country, I would never think of Maidstone being a suburb of Maribymong but of Melbourne.
I think here most would be interested in suburb/town, state, country as that is how most people think of where they are from, even those in the big cities relate to their suburb first, then the city. Especially in some of the older cities were the suburbs were essentially mini towns which have merged over time into the greater whole.
Basically, the reason I want to resolve the locations is so I can do some migrations patterns studies and look at how families are grouped by town/suburb (so I can focus my research on specific areas at specific times).
If I can't resolve addresses, then when I print a place report, it lists them all individually. So instead of 20 events under Maidstone, I get 4 under one address, 5 under another and the remaining under Maidstone. The report which is pretty crappy, gets even worse!!
I did try and find some discussion on this but the search isn't very helpful.