Quayside is a great area, with shops (especially the antique shops), pubs, restaurants was well as sightseeing.
Set on the River Exe it is very picturesque, its only a 10-minute walk from the town centre. The Exe bridges used to straddle the river, but it has been replaced with the Cricklepit Bridge. It the fun place to catch a fruit juice or beer or listen to one of the many musical interludes. For more info check the Visitor's centre, surprisingly a fountain of information.