Stayed here in January 08, and found it a really nice hostel.
the building has loads of character - i think the staff told us it used to be a halls of residence for young nurses; it's a huge rambling place with some great communal areas (a very grand living room and a nice basement kitchen with lots of fridge space and loads of tables for meals).
our room (3-bed dorm) was big, airy and light, everything was spotlessly clean, and the bathrooms were really new and nice too.
the staff were really helpful and friendly, and have apparently negotiated deals with various local eateries for free meals etc for guests (i think these deals are mid-week only, we were there at the weekend so unfortunately didnt get to try any out).
the location is good - a short walk to the bus station for arrivals and departure, and also only a few mins on foot to the lovely and quirky saltwater swimming pools alongside the sea. shops for food etc within walking distance.More