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Based on a 3 month trip in 2002/2003.
First of all: Don't expect New Zealand to be an untouched wilderness (the "Lord of the Rings Country" image currently promoted by the NZ tourism industry). Though New Zealand has a population of only 4 million people, most of the country is very developed: farmland with grazing cattle and sheep, deforested hills, pinetree plantations. Like in Europe, "wilderness" is restricted to national parks.
New Zealand's national parks are very beautiful and protect a variety of landscapes (mountains, rainforest, coastline, fjords, to name just a few). Keep in mind, however, that most types of NZ landscapes can also be found in Europe. Many European travelers are surprised to find themselves in places that look just like the Alps, the British Isles, Brittany or the Mediterranean. New Zealand may be on the other side of the world, but hardly ever will it seem "exotic" to a European. As one of my fellow travellers put it: "A trip to Turkey would have been more exotic". The only places that didn't look European to me were the volcanoes in the North Island and the rainforests in the South Island.
Conclusion: Australia-bound travelers (like myself) or round-the-world trippers should definitely consider spending a month or so in New Zealand. However, I personally wouldn't pick New Zealand as a holiday destination if I only had a few weeks and was not going to see any other countries in the region as well.
Try to go to NZ in February/March when you are most likely to get good weather and avoid the worst tourist crowds. November/December are often still very cold and rainy and the weeks after Christmas until the end of January are the main NZ holiday season and consequently very busy. As a general rule, be prepared to meet many fellow overseas tourists, mostly Germans, Dutch and Israelis. At times, they seem to outnumber the locals...Also expect to constantly have to prebook accomodation, transport, huts and activities which is bad news for the spontaneous traveler who would rather wake up in the morning and then decide where to go and what to do. Popular hostels, huts on well-known hikes and wildlife watching activities are often booked for days, sometimes even weeks. Also keep in mind that traveling in NZ in the summer does not mean it will be mostly warm and sunny. Even in February, the warmest month, it can get pretty cold and rainy, so bring enough warm and waterproof clothes (like you would if you were to spend the summer in Ireland or Scotland).
I would suggest to read up on the national parks, pick the ones you are interested in and go hiking there. For information on New Zealand's national parks, check out the Department of Conservation's webpage at www.doc.govt.nz. Expect to "rough it": Huts in NZ are not comparable to European huts with electricity, cooked meals, blankets and cooking equipment. Instead, they are very basic shelters with only matresses provided. You have to bring your own food, cooking gear and often a stove as well. Since water from rivers or the watertanks near the huts might be contaminated by the parasite giardia (meaning several weeks in hospital), it is a good idea to bring an iodine solution for water treatment (12-15 drops/l of a 2.5% solution, let stand 20-30 min).
Tongariro NP: The Northern Circuit is a great 2-3 day hike. You have to be lucky about the weather, though, it's no fun in bad weather (i.e. most of the time).
Wai-o-tapu Geothermal Reserve: Bubbling mudpools, geysirs, and other geothermal stuff in all kinds of colors
Paparoa NP: Stay at the Te Nikau Retreat in the middle of amazing coastal rainforest (which I liked just as much as the rainforest in Costa Rica). The hostel is a convenient basecamp for a couple of relaxed dayhikes.
Abel Tasman NP: Amazing beaches surrounded by lush forest. Some beautiful campsites. On your several day hike, allow time for just hanging out on the beach. If you want to stay close to the park, the Barn at Marahau is the place to be.
Great Barrier Island: Very beautiful and peaceful island with nice beaches and native forest (as opposed to the mainland, the island is free of introduced species). Everything is pleasantly backward: cars that look like wrecks, no ATMs, only a couple of tiny villages, a few friendly islanders, hardly any tourists (except for the weeks after Xmas). Perfect place to chill and think.
Queen Charlotte Track: A relaxed walk that takes about 3-4 days. You can stay at hostels along the track and have your luggage transported for you (the boats that take you to the start and end of the track also do free pack transfers). Nice views of the Mediterranean-like Malborough Sounds.
Keas (mountain parrots): Meet the cheeky parrots on top of Avalanche Peak, a great hike in Arthur's Pass NP.
Albatrosses and Penguins: They are most easily observed on the Otago Peninsula and in Oamaru.
Glacier hike: I thought the full day glacier hike at Fox Glacier was fun (though it could be argued that you could also do a glacier hike in say Switzerland)
If you don't have a car: The bus system is pretty good. For maximum flexibility, ignore organized tour buses like Kiwi Experience (for teenagers who like to get drunk) or Magic. Even the bus passes offered by Intercity (the national bus company) aren't necessarily the best deal: you will be more flexible (and usually get cheaper fares) by using local shuttle buses. Buses are comparatively expensive in NZ, don't expect dumping prices like with Greyhound.
New Zealand is a hostel wonderland. BBH hostels are the best, often cosy, personal and homey places (www.backpack.co.nz). By contrast, YHA hostels tend to be large, impersonal and hotel-like.
You cannot receive phone calls on public payphones in NZ. Few hostels have a guest phone for incoming calls, so you can never rely on it. Phonecards for calling to Europe aren't such a great deal (13 NZ cents/min). Virtually every hostel and even the most remote villages have Internet access. However, Internet access is very expensive outside the major cities (up to 8 NZD compared to only 1 NZD per hour in Auckland or Wellington. If you have a mobile phone, take it with you: you can often get a cheap sim card for the local system. Buying a mobile in NZ is very expensive (200 NZD plus prepaid phonecards).
Forget about traveler cheques, nobody uses them. European Ec-cards (with the Maestro symbol) work in New Zealand and there are only small fees for withdrawing money. Creditcards (Visa, Mastercard) are accepted almost everywhere and are often needed to prebook hostels. Opening a NZ bank account is free at ANZ and takes only a few minutes (you get your ATM card right away). ANZ cards are accepted in almost every shop and at all ATMs.
If you don't really have enough money for your trip and are thinking about working over there to save some money and then go traveling- forget it. Wages in NZ are very low (for New Zealanders and foreigners with work permits alike): You can expect to make 8-14 NZD an hour (fruit picking being at the lower range, secretarial work being at the higher range). The 14 NZD/hour jobs usually require a 3 month commitment. Working in NZ might give you enough money to just about support yourself (food and accomodation), but you will hardly make enough money to put some aside for traveling. If traveling around NZ is your goal, you should consider working back home until you have saved enough money. Working in NZ would be a waste of time considering how much more you would get paid in your European home country. If, however, you want to go to NZ for a work experience abroad, you might be interested in getting a Working Holiday Visa: it allows you to stay for a year and work (see conditions at www.immigration.govnt.nz). You can also work at many hostels in exchange for free accomodation. That usually means 2-3 hours of cleaning in the morning and saves you paying around 18 NZD for the night. So if you just want to travel cheaply, this may be the way to go.
Auckland: Stay at the Brown Kiwi (BBH hostel); hang out in Albert's Park
Christchurch: The Arts Center is worth a look.
Dunedin: Enjoy the free internet access and the alternative atmosphere at the Arc's Cafe.
Fox Glacier: At 68 NZD (BBH member discount), the full day glacier tour is a lot cheaper than comparable tours at Franz Josef Glacier.
Great Barrier Island: Stay at Medlands Beach Backpackers, very isolated, nice beach, free mountain bikes
Nelson: Stay at the Almond House, very clean and homey
Picton: The walk to the tip of the Snout peninsula is very nice.
Punakaiki: Stay at my favorite NZ hostel, the Te Nikau Retreat, in the middle of the rainforest
Oamaru: the cheapest way to get close to yellow-eyed penguins in NZ is with Jim, a DOC ranger, who takes you to the colony for 8 NZD
Otago Peninsula: site of the only mainland Royal Albatross colony in the world (but 24 NZD entrance fee)
Wellington: Stay at the YHA (not the Wildlife House or the Cambridge Hotel); hang out in Fidel's Cafe
One of the best things about New Zealand may be the people: New Zealanders ("Kiwis") are an incredibly friendly and relaxed bunch of people with a great sense of humour.