We stayed here for five nights in November 2012. The room was comfortable and there was always plenty of hot water. There's a decent sized kitchen and we cooked there several times. The wifi is fast and there's also a computer you can use and a tv in the living room, plus a book exchange. We also made use of their baggage storage when we went on the Inca Trail hike.
The hostel is about a ten minute walk from the central plaza, near some supermarkets and other shops. It's very secure, but be careful crossing the road outside as the cars come at you from all directions!
The staff were really friendly and helpful. They even have oxygen in case you get altitude sickness. We would definitely stay here again.