I spent a very nice time in this hostel, wich is situate near the chinatown of Melaka (5 minutes walking). The place is quite, clean and the rooms are very comfortable. According to the staff, we met people absolutely open-mind and who are very generous. I remember the delicious biscuits homemade they offer us one day. :)
For bagpackers, there is 4 rooms for you! you can choose if you want air-con or not (30 or 40 RM).
To conclude, I really recommend this place as I really recommend to visite Melaka.