Where are the best places to watch the Melbourne Cup?

Lamaro's in South Melbourne has live screening of all the races.
Also The Grace Darling Hotel in Collingwood has a giant screen showing the race while a sweepstakes takes place. They have a Cup day barbecue and DJ entertainment throughout the afternoon.

Last year I drove down to Sorrento and popped into the Hotel Sorrento http://hotelsorrento.com.au/. It's a beautiful venue and was packed (but there's free parking in town and only a 5 minute walk away).

In Melbourne I've heard the Munich Brauhaus http://www.munichbrauhaus.com/ is a blast to watch the race.

I'm heading to The Wharf Hotel in Docklands. They're running a full a la carte menu from 12pm, have 9 screens so you don't miss any of the Flemington action, a sweepstake and have live music from 5pm if you want to kick on afterwards http://www.wharfhotel.com.au/.

I'd also recommend the champagne breakfast at The Botanical in South Yarra for $25pp 8am-12pm (no reservations required) http://www.thebotanical.com.au/.

Or for a more budget friendly option grab your friends for a picnic and head to Fed Square. Live race coverage starts from 10am on the big screen.