Hi I remember the building that was the Queens theatre it was opposite the market in Adelaide St. When i was little it was empty then for a short while it was petrol station. The Art cinema where Iceland is now. I don't know if it was ever a live theatre but I do know that it used to have a live orchestra when they showed silent films. My late Mum used to work there in the late 20's early 30's and then when the new cinema the Victoria opened she went there.
Sorry couldn't be more help but hope that was of interest to you.