We were staying here during the full moon period in august 2012 and stayed here for 6 nights. The bungalow is very, very basic. I think you could get better bungalows for the same price on the island (we had some better for the same price around Thailand). The bed was hard but the room was spacious. The bungalow is okay if you only need it to sleep in it. We enjoyed our time at Blue Lotus Resort. Especially Pong is very welcoming. The restaurant has a nice menu with a couple of good Mexican dishes.
Pong offers scooters for a good price, we hired one, and we found out that this was the best scooter we hired with good maintenance! So we felt pretty safe on it. The location of Blue Lotus is very convenient on the island. With scooter it is a 10 minute ride to Haad Rin and also a 10 minute ride to Thongsala. The 7-11 is at +/- 2 km. During the full moon Pong offered us cheap rides (cheaper then shongtaew/taxi) to the party. Also a big plus: at Blue Lotus it is quiet with no noise of the parties at Haad Rin.
When we left Blue Lotus Pong offered us a free ride to the pier! High service! I would highly recommend this place (also when there is no full moon because of the location).