Didn't get much time to play today, but did manage to kill that Hydra in Darkroot and finally killed that bridge camping dragon too. Didn't know where to go next so I took a lift to some mountain area and killed some blue drakes. Followed a narrow ledge around and sniped a bigass dragon. Then I found a cave leading into Blighttown. I guess I'll start on that tomorrow if I get some time to play.
I like just stumbling around finding new areas to explore. It's a refreshing change from all of the on rails, guided, heavily scripted, cutscenes to the max, press "A" for awesome, crapfests that almost every big dev/pub is making these days.