Sydney Festival 2010 is over, but other events start in February. From February 12 until 28 Sydney celebrates Chinese New Year – Year of Tiger. Will be a lot different festivities in Chinatown and over venues. A highlight of the Festival will be spectacular Twilight Parade on 21st of February. Straight from Twilight Parade head to The Domain as on the same day at night will be shown finalists of World’s largest short film festival – Tropfest. Go there early as place fills up very quickly if it is not raining of course 
And the last big event at the end of February – Mardi Gras Parade. It will be as always huge parade of theatrical and spectacular floats on Oxford Street.
Also try Bondi Openair, it’s an annual openair cinema event that includes live music and entertainment. And is held in the courtyard amphitheatre of the Bondi Pavilion.