I really don't like it when people make assumptions about colleges when they don't talk to people who live there. I live at Queen's College, which is the most Northern college on College Crescent at the University of Melbourne. I love it so much I'm returning for a 2nd year.
For a start, they aren't 'heaps lame', as someone said...and by NO way are they religious (like there are some religious ones but I certainly know my is not...there is optional religious stuff if you want to get involved...but unless it involves goon or beer, most ppl don't participate). Living in college isn't for everyone, but if you're willing to have a kickarse first year of uni and meeting people that aren't just doing your course, then its definately worth it. It's really expensive, granted, but scholarships are available, and if you work your arse off, you'll get one.
Although it's too late for applications for 2007 entry, I reccommend living in a college.
Also, College Square and the Colleges of the University of Melbourne are extremly different. College Square is an apartment block, the colleges are communities, you know everyones name, you play sport, you participate in community and cultural stuff and you have an awesome time.
If you're new to Melbourne and you're really worried about not meeting people (if you're not living in a college) then hit the sign ups for the clubs and societies in o-week and get involved. Meeting ppl in your lectures can be really hard if there are 500 ppl in the theatre. Or, if worse comes to worse, become a non-residential member of a college...not many offer it, I know Trinity does and it provides academic support plus a few social things.
Don't sit back in your first year and expect to have people just come up to you, you have to be proactive.
Edit: And Ormond is primarily Melbourne kids...in comparison to other colleges. Real private school atmosphere (like lots of leavers from a certain school try and get in = party party party cos they already know one another) But it must be ok I guess - I can only guess. Lol.