It's a dirty place but I met there some funny poeple!
it's very close from the center and the neigborhood is great (it's the french district ;) ) but don't go to the club in front of the hostel, it's a shame!
I rented a room for only 2 via the internet at Hostel Acacia. It offers cheap sleeps very close to the center, in a great location.
Yet, I was disappointed in the way the hostel is kept clean and nice. Our room was on the top floor, it was not very clean. All was old and in a pityful shape. The first liters of water that came out in the bath tube were brown.
Next time, I may pay a bit more for a room, but this is not the kind of place I wish to stay at, even with a low fare and in a nice area.
It was nearly 2 years ago, so the situation may have changed since then.