I have found on a site 2 ipads...
1. ipad2 64gb wifi+3g ($600 NZD)
2. ipad3 16gb wifi-only ($600 NZD)

Which do you think is better value?
I'm worried that 16gb won't be enough although I will mostly be using it for games, photos&vids (not movies/tv shows), internet browsing.

Thanks in advanced,
-Coalas

Edit- I won't be using 3g much (or at all)

Anyone have any ideas?

Really depends on your primary usage.
As k yourself how much storage you really need.

Which do you think is better value?
i'm worried that 16gb wont be enough although I will mostly be using it for games, photos&vids (not movies/tv shows), internet browsing.
16GB will be plenty for those uses. More than that, even if you wanted to watch movies, you likely would purchase a Netflix (http://www.netflix.com) subscription, which doesn't require a huge hard drive.

I recommend you go with the iPad 3. Here's why:

It has a retina display, which, is easily the best LCD on the market today.
It has double the memory capacity (1GB) of it's predecessor
It has 4g LTE capability.

The retina display alone is worth it.