Factual error: That is not a crocodile that attacks Sue. It more closely resembles an American alligator - the squat, rounded snout gives it away. Australian crocodiles have a much sharper, more angular snout. There are other tell-tale physical features, most notably the placement of the alligator's teeth when it closes its mouth, but that's the main one.
Crocodile Dundee (1986)
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Directed by: Peter Faiman
Starring: Linda Kozlowski, Paul Hogan, David Gulpilil, John Meillon
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More mistakes in Crocodile Dundee
Street Thug: You got a light, buddy?
Mick Dundee: Yeah, sure, kid. There you go.
Street Thug: [Opens a switchblade] And your wallet.
Sue Charlton: Mick, give him your wallet.
Mick: What for?
Sue: He's got a knife.
Mick. Ha ha ha. That's not a knife. [Pulls out his 16" Bowie knife]. That's a knife.
Trivia: The precis for Croc Dundee is a New Yorker travels to Australia, finds an Australian man, takes him back to New York, falls in love with him, drops her current beau and marries him. This mirrors reality. Linda Kozlowski married Paul Hogan after meeting on this film. He left his wife for her. In the sequel the characters return to Australia for protection, loved it and stayed. Likewise the real life stars moved back to Australia and lived in Byron Bay for 17 years or so.
Question: During the scene with "live it up" playing in the background, what was it and where were they? With Simone being there it is obviously full of hookers but was it a party, and if so, whose and why? The whole scene just feels weird.
Answer: It is a party thrown by one of Sue's socialite friends, presumably the husky-voiced woman whose crotch Mick grabs. The party is not "full of hookers", Simone is there as the hired escort of the old man she is dancing with, who Mick naively believes to be her father. We can assume the old man paid for Simone to be his date to the party and likely for some time alone with her afterwards. There is no stated reason for why the party is being thrown.
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Suggested correction: You can tell by the shape of the snout and the ridges above the eyes that, although animatronic, it is meant to be a Marine Crocodile that is native to Australia. It doesn't resemble an American alligator, which doesn't possess those pronounced ridges. Also, freshwater crocodiles can be seen in the boat ride scene where Mick motions for Sue to lean up off the edge of the boat. They have the narrower, angular snout that you referenced.
The placement of the alligator's teeth when it closes its mouth shows that it is more like an alligator than a crocodile. In fact, the animatronic puppet is a bizarre mish-mash of physical characteristics of both crocodiles and alligators.