I have stayed at Spicy Tao for a few weeks and had such a good time. It is rustic, cheap, laid back and always full of cool travelers. For 200THB you can get a fan dorm room with free breakfast.
The crew I met at Spicy were such a laugh. The atmosphere was very social and everybody hangs around in the common area watching the multitude of movies on the hard-drive all day and laying about in hammocks. Then come night-time, everyone has a few drinks and the music gets a bit louder..
We went on a snorkel trip around Koh Tao which can be seen at http://tropicalnomad.com/spicy-tao-snorkel-trip/ .If you are looking for polished floors and hotel pools, you are in the wrong place. Spicy has cats, dogs and roosters as part of the family. All forms of insects running about as Spicy is set in a traditional Thai Jungle setting. The staff were cool guys and organised BBQ's at sunset view bar, pub crawls and forward travel for guests wanting to go on visa runs or get to Bangkok for a flight home.
I really enjoyed Spicy and think you will do!More