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Hit the Mission... the Mission District, that is. The most ethnically-mixed part of SF: part South American cityscape, part Chinatown, part dotcom graveyard, part art community. Plenty of art and performance spaces, used bookstores, and tons of good cheap taquerias, bakeries, and restaurants (some not cheap). Kinda gritty, too, you can get into trouble in some places; but the locals can help you out. Especially check out 24th street, from Potrero all the way up into the Noe Valley, which is another cool neighborhood. The Castro's nearby too, another great neighborhood. But the Mission is SF Neighborhoods 101. Best weather in town, too.
Walk, take the bus; best way to see San Francisco. Get a day pass.
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