I heard Nathan's Villa was great too.
We stayed at Mama's Hostel and it was also great. Really chill place, more like you are hanging out in someone's apartment, and they have fresh fruit on the table you can eat whenever you want, and in the mornings they have bread and jam and tea for free. Free internet in the living room, washing machines etc. big lockers in the room, and it was a great location, just about 30 steps from the main square in the old town. Well priced too, though i can't remember how much. Check it out.
"Sir, you're drunk!"
"And you're ugly. But tomorrow I will be sober, and you will still be ugly."