Locations setup

Hi there

I’m using gd v2.0.0.79 and want to start adding locations in Australia only. The following is confusing me:

In the case that you are starting a new directory and want to limit your directory to one region or country and perhaps several cities, here is how to go about setup:

Visit the Locations tab and enable Multi Countries, Regions, and Cities
Go to Places – Add New and add a listing in each of the Countries, Regions, and Cities that you want to use
Return to the Locations tab and choose “Selected” Countries, Regions, and Cities, selecting for each the locations you want to use

Do I need to add the states as the regions or the actual regions per state?
Do I need to add listings for all the cities I want to include? (Wouldn’t this be time-consuming?)
Do I have to use a default location when I’d prefer it to be where the user is currently located?

Thanks for your help. I’ve been reading the help documentation but it’s heavy going…