
I'd definitely take a laptop for a 2 week trip as it makes planning and locating touristy things that much easier. Try and stay in a place with free wifi - hostels will usually have free wifi, hotels usually charge. Free wifi options: http://londonist.com/2007/05/free_wifi_in_lo.php
For getting from Heathrow to London - if you're staying near Paddington I'd suggest the Heathrow Connect instead of the expensive Heathrow Express. They both run on the same track but the Connect is less frequent (every 30m and has a couple of stops so takes 10 mins longer) but is almost half the price. Alternatively take the tube (subway) if you've got the time to spare or aren't staying near Paddington.
Transport: the tube is usually the easiest option, though often it's quicker walking if only one stop. If staying out, tubes stop around 00:30 (earlier on Sunday nights) but there are nightbuses - see http://journeyplanner.tfl.gov.uk/ for planning a bus route to/from your hotel. For tubes/buses: you can buy a (pay as you go) Oyster card when you get here (£3 refundable deposit).
Cabs: you can only hail black cabs. Other cabs (usually cheaper) are called "minicabs" and can only be booked by phone. Addison Lee is the biggest minicab company but not the cheapest.
http://www.ianvisits.co.uk/calendar/events/ is good for London geeky events - worth checking out when you're here to see if anything interests you. Other people have covered the museums so I won't bother.
Worth a read: http://wikitravel.org/en/London
Buy a copy (in London) of Time Out London (weekly events/gigs/film/tv/theatre etc listing magazine) and also one of their London guidebooks. They're the best guides. May also be worth picking up a free "TNT" magazine (they're everywhere) for gig/party listings - is popular with backpackers/younger people.
Try some markets in London too: Borough Food Market on a Sat morning; perhaps Camden Market ("alternative" but rather tired) on Sat afternoon. Spitalfields on a Sunday (trendy junk). Columbia Road flower market on Sunday morning is very good too (for something a bit different). There's Christmas markets in Hyde Park and by the O2 (North Greenwich tube).
Main deparment stores are between Oxford St tube & Marble arch tubes - just walk along Oxford St. Selfridges is more popular with Londoners than Harrods. If you want a shopping mall then there's Westfield (Google for locations).
Get a single ticket on a boat to Greenwich to see the meridian line, naval observatory, painted hall etc. But don't take a boat back as it takes forever - instead get the tube back.
Out of town: Brighton is also worth a weekend trip (train is 1hr from Victoria or London Bridge). Sat/Sun are best for the shops on the lanes. It's the closest seaside town to London - though take a map so you know how to find the lanes (on left hand side as you walk from station to seaside). December won't be so great but it's still worth a visit.
You can go to Oxford, Brighton etc on the bus but I prefer the train (quicker, more comfortable). I'd recommend pre-booking at least a day in advance - when you book you can choose to pickup the ticket from a machine at the station. http://www.eastcoast.co.uk/ is a good site for getting an idea of rail fares - if they're too expensive then take a bus (most buses leave from the coach station near Victoria station).
"What man has done, man can aspire to do." -- Jerry Pournelle, about space flight