A good places to shop for gifts, cheap essentials for more comfortable backpacking (sarongs, bamboo mats) and, erm, computer software. Be prepared to haggle good-naturedly for excellent bargains. Also great for cheap noodles and ice desserts.
South of central Phnom Penh,
Phsar Toul Tom Poung (streets 155 and 50)
Updates
Going back there again this summer; more places are selling the same souvenirs, but the prices are pretty much the same - and the food at the noodle stalls in the centre is still delicious.
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