My driving license issued in Delhi carries my single name and my passport carries by surname as well. Here is where the trouble starts. If at all it is BEST if you can get the name corrected in India, don't mind spending Rs. 2-3000 there as it is much more cumbersome here.

First of all, do not believe what RMS executives say in the first place, check with different executives from different centres. Everyone has their own set of requirements or documents. In VFS too, I heard different stories each time I had called up. It is must to ask for a call reference number and provide that whenever you call them. I have a long story with me, but I will make it short here and start with the documents which I was asked to prepare finally after umpteen visits to RMS and numerous calls to Consulate General of India and VFS Global. 
MOST IMPORTANT: Get a RTO verification letter even if you license is in English. Get this done, if your license is not in good shape or names in your license carries initials like Mr, Sh, etc. Basically name in your passport should exactly with your name in license. You will have to get one from here otherwise which means lots of dollars. There is no such format, in Delhi, Gurgaon and Ghaziabad. They will just search your DL number in their systems and print that page. It has all vital details which are required here. Just in case someone doesn't has that these are things which you need. Importantly, do not bother about the address, RMS does not consider it important, it could be of anywhere in India as long as your name and your father's name is correct.
Name
Father's Name
Date of Birth
Address
DL Issue Date
DL Expiry Date
Category of allowed Vehicles (LMV, Motorcycle)
Get an affidavit on a Rs. 10 stamp paper from India stating that the person in driving license and the passport are same. If you are in Australia, even then get one from India and get it couriered. I have done the same (my mother wrote the same for me) and I had to pay around Rs 3500 to DHL. Courier was fast and I got it in 4 days. It will dig your pocket deeper if you will get a notary from here as you will have to get the notary document apostilled (some kind of stamp) too, which will cost you around $140.00.
Get photocopies of all major documents which carry both your single name and full name like PAN Card, Passport, Voter ID Card, educational docs, etc. DO NOT get them notarized or attested from India (I read somewhere and did this mistake). Bring the originals too as you will have to get those attested by Justice of Peace (similar to a gazetted officer in India). Surprisingly, this is very easy and free of charge. I just got my docs attested today.
This is the last step, go to VFS global site and navigate to Attestation of Documents. Goto CHECKLIST & APPLICATION FORMS and fill the forms and take everything to VFS Global. They would give you a document stating that the person on the license and the passport is same and RMS would happily accept that. I would recommend visiting them personally. I am in this step, will update here if there is any change, just keeping my fingers crossed that everything is aligned as per them.
Hope this helps someone. Feel free to reach me should anyone require more information.