When I was there this past summer there was only one hostel...well two actually but they were both offshoots of the same thing. They were HI hostels and were plenty comfy with free internet. They did have a lock out period, which I hate, but everyone was cool. The HI hostel is also about a 20-25 min walk to the real old town, but it is a boardwalk walk around the bay soooo. Anyway, San Sebatian is sweet, you'll have fun doing nothing.
Live life so there is standing room only at your funeral
The beauty of this world will last
Much longer than its men
No need for man to test this fact
Enjoy the view instead----Me(Part of a longer poem)