In Sydney, in the 1880's, a large building in the Botanic Gardens (called the Garden Palace, and only opened a few years before) burned down. Popular rumour at the time said that the old convict records were stored there and some people who had risen above their convict origins helped the fire start for this very reason.
It's a good story, but I believe it's not true.
As far as I know, there isn't a convict in my ancestry. But I have still to research my maternal grandfather's line - I wouldn't be surprised to turn up one or two convicts there.
Joybell - have you read Randolph Stow's book 'Moonlite'? It's a kids book that is very funny. He apparently based some of the exploits of his fictional bushranger on Moondyne Joe.
Cheers
JennieG