We stayed 4 nights in this hostel, and liked it very much. It's situated on the Cerro Alegre, one of the most beautiful areas of Valparaiso. The neighbourhood is very arty, with nice cafés and restaurants within 10 minutes' walking.
The dorm was quite simple, but nicely separated into an upper and lower part (sort of a mezzanine), so that you were either sleeping with two or three people on your "floor". The room was a bit noisy because it was right next to the lounge, but the place was quiet between 11 PM and 8 AM.
Breakfast was really good, with homemade bread (2 kinds), homemade jams, butter, fruit, coffee, tea, whatever. Definitely one of the best ones we've had so far.
We liked our stay very much and would go there again!