Arbat Ulitsa (Arbat St) is a pedestrian only stretch of road just east of the Kremlin. It is lined with shops and restaurants as well as souvenir kiosks. The sellers are not in your face and haggling is a must. Most of it is pretty camp, but some is quite nice. Make sure you are looking for Arbat St and not Novy Arbat St, which is a bit dull and lifeless.
Get off the metro at Arbatskaya and look for the statue of Gogol. Walk past the statue and you're pretty much there
Updates
Beware - there are two separate Arbatskaya stations. Make sure you go to the one on the light blue, not the dark blue, metro line.
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