What to See
Pondicherry and the surrounding area is brimming with things to see and do. It presents some of the finest architectural sights in the south of India. There are museums, gardens, a park, the Sri Aurobindo Ashram, Auroville, and a lot more.
The Sri Aurobindo Ashram
The Sri Aurobindo Ashram is situated at the heart of the city. The "samadhi" [wikipedial link] of Sri Aurobindo and Mother [link to info] is located here. It has a very peaceful atmosphere and is meant for meditation. You need to to attain prior permission to visit the Ashram.
The Sri Aurobindo Ashram also has a number of departments that you can visit, and book stores, and other hand-made paper where you can purchase items.
Auroville
Auroville is an international city which was built and started in 1968 by the Mother of the Sri Aurobindo Ashram with the idea to create international city. The residents live in around 15 different communities within Auroville and speak 55 different languages. It is an exciting project for understanding the environmental needs for spiritual growth.
Matrimandir, the meditation hall, is one of the more important places to visit here. You need to get a pass issued to visit the Matrimandir. There are a number of other things to see in Auroville. A good place to get started is the Information Center.
There is an organized tour of Auroville that begins and ends in Pondicherry. This might be a good way to get around Auroville for first timers.
Monuments In Pondicherry
There are number of monuments in Pondicherry, some of which have even a historic importance. Some of these are: the structure in the middle of the park, the Roman ruins in Arikamedu, the statues of Mahatma Gandhi & Dupleix at the beach, the French War Memorial, again at the beach, 19th century Light House, the Pondicherry Museum, the Bharathi & Bharathidasan Memorial Museums, Ananda Ranga Pillai's mansion etc.