Looking to relocate to Port Macquarie. What are the best and worst places to live?

It all depends on your budget and what type of home you want (house vs unit).
The best would be Crestwood, Lighthouse Beach, Emerald Downs, The beaches (except for the high density streets around Flynns), Settlement Point/North Harbour, Settlement Shores (aka 'the canals'), Bellevue Hill, Transit Hill, Timber Ridge, Siren Rd.
Sovereign Hills, Ascot Park and Inneslake if you like bumper to bumper traffic every morning (newest parts of town, typical greige mass built homes).
Middle of the range: Lord St/Kennedy Dr, Sherwood, Granite St/Hill St, Waniora, Greenmeadows, Lady Nelson/The Jib, Newmarket & The Binacle.
Near the bottom of the barrel but cheap and cheerful: Clifton, Widderson St, Lake Road, Ackroyd St/Table St/Gore St, Old hospital, Fernvalley Pde, Jobling St & Slade Cr, Carriage Way/Toorak Ct.
Avoid at best: Bennett St/Muston St, Flynn St/Surf St/Crisallen St

Rule of thumb questions to ask yourself as you research:
1. is the subject street in walking distance to town or local shops?
2. if Yes to above do the number of cheap unit rentals outnumber standalone houses 10 to 1?
3. If Yes then NO do not live there.