How bad is the water in Newcastle?
I know during previous water discussions NZ water was the best but most of Australia (errr.... Adelaide excluded) has pretty good water.
Filtering your water is good for equipment longevity but bottled seems like such a pain (errr... unless you live in Adelaide :) ).
Most tap water improves if you can let it get some air (or chill it), pipe sediment will settle and chlorine will disapate.
I will prob get flamed by others but I would suggest just use your gear and enjoy it. Dont make it too hard on yourself when starting out else all your new shiny toys wont get used.
Roast yourself some beans, throw em into the machine and enjoy the coffee from your Gaggia twins.
There will be plenty of time to fiddle and tweak later. :D