Lucky bay is one place you have to visit while in Kalbarri, travel south along coast road about 11kms (I think) turn right and head towards the ocean, then you can either go north through the dunes, tracks and beach towns or hit the beach and drive along that. If you go to the tourist centre they can give you directions. It is a beautiful place, take sandboards and your snorkling gear because there is a protected area of water which has some brilliant fish life and coral really close to the shore.
Just found this on youtube, pretty much shows off the whole area.