Not a response to post #1, but didn't think this warranted a new thread. Just wanted to add another data point/experience for anyone going through this process. The information about the process scattered across the internet is a little haphazard and at times contradictory, so hopefully my experience is helpful.
In mid-August I was rejected through ESTA for the visa waiver (have visited DPRK). Had to go through the whole B2 application process.
When I initially submitted the application, the earliest available interview was in February! Not ideal with flights booked for December...
No avenue for expediting the process as I didn't fit any of their allowable grounds. Only option was to keep checking the 'reschedule interview' page incessantly and hope for cancelled slots to reappear. (tip: refreshing the page too many times will trigger an account lock, but the counter seems to refresh each session, so I would suggest just checking every couple of hours). I got lucky and there were a bunch of September dates dumped one morning, but couldn't really see any pattern. Checked a few more times over the next month out of curiosity, but never saw anything earlier than December... Need to be careful here though, as I believe there are a maximum number of times you can change your interview date.
Interview date finally rolled around yesterday. Had to trek over to North Sydney. Consulate is a short walk from the station. Quite convenient.
Dressed in business casual because the internet said I shouldn't turn up in shorts and a T-shirt as the impression you give may be taken into account. Don't know how true that is, but figured it couldn't hurt. Others there had T-Shirts, shorts, etc and it didn't seem to negatively impact them.
They use the street entrance and there was already a short queue lined up by a small sign at the door. There is no waiting area inside. Security only let people in a couple at a time according to how many people are already inside.
Arrived about 30 minutes before the scheduled 9:45 interview time (recommendation is 15). Security popped head out the door and asked for any 9:30's. After another few minutes came and asked again. When there were no more, she asked for 9:45's and let 5 of us in.
Had to turn off phones. Let in through the next door where my confirmation page was scanned and a sticker placed on my passport.
Directed through airport-style security. Had to surrender mobile phone and keys (was given a bag check token). I thought bags wouldn't be allowed, so didn't bring one, but a couple of others had small backpacks that seemed to pose no problem.
Passed security and was sent upstairs.
The interview space is basically like a row of bank tellers but with a bit more privacy between each.
Step 1 - first window they scanned my provided passport-size photo, took my fingerprints, checked the passport, confirmed visa class. Sent me to step 2.
Waited in another short line. Probably about 5 in front of me at the time, but with 3 windows going it moved quickly.
Step 2 - the interview proper. He mentioned my rejected ESTA and asked if I was told why. I indicated it didn't say, but that I had a good guess. Explained my visit to North Korea. He asked basic questions about the reason for the visit, about the tour company, the kinds of activities, etc. A bit about my occupation and uni qualifications. Interview was fairly short, quite courteous and professional, not terribly intimidating.
I was prepared with printouts of bank balances, past holiday itineraries, onward flight info for this trip, hotel booking, past passports, etc, but none was asked for. Not to say you don't need it - better to be overprepared than under - but seemed in my case they were happy with verbal responses.
Was told at the end that I was approved and would receive an email within 7-10 days.
Back downstairs, collected my phone and I was back out on the street 1 min after my scheduled interview slot. By my estimate I was probably inside for about 20-25 minutes all up. Very smooth, very easy.
Received an email saying 'visa issued' and 'passport ready for collection' around 3:30pm that same day!
Collection hours are limited to 10AM-12PM. Pickup is on Kent St in the CBD (different location to interview) unless you stump up the $57 to have it mailed back.