We stayed at a hostel called Cheng Du Dreams hostel. The only dreamy thing about this place was ONE staff girl named Jinlin (nickname Panda) who made our stay there bearable. I really have nothing great to say about this place except that if you book their 10 dorm room, you get it for 9RMB each a night. Which is the cheapest we have found. However note that the bed comes with no bedlinen, the bed is rock hard and the they lie on the internet - there is NO towel included and NO internet. Plus the Wi-FI is SO crappy I think it is not even their Wi-FI but kind of stolen from someone else nearby. Note for this place you pay MUCH more if you just turn up at the hostel.
There is a great hostel just around the corner from this one called 'Holly Hostel' - I went there for a cooking class which was fun. The staff are helpful and even though we were NOT staying there they let us use the internet for free! They have great atmosphere and the cleanliness was awesome. THe prices where even the same as our hostel (well except for the 10 dorm thing). All other rooms were the same price.
Both these places are just opposite the Wuhou temple and you can get there by bus 57 from the North railway station. Cost is 1 RMB for a crappy bus and 2 for a new bus.
Another nice place we got a chance to see since friends where staying there was Sims Cozy Guesthouse. This is in the North area of Cheng Du. You can catch bus 28 from the North Railway station. Place has awesome facilities and was reasonable in price for all you got.
I wouldn't ever stay or recommend the Cheng Du Dreams hostel.
The area we stayed in was nice though, but you have other alternatives - it is actually the tibetian quarter of the city, so you can walk around and there are many other guesthouses which are NOT listed on hostel sites.
The Wuhou temple area is great for tourist walks. Plus you walk around a BIT more and you find the local streets which have GREAT quality made knockoffs at rock bottom prices. So of course we had to get SOMETHING! hehehe
Right next to the Cheng DU dreams hostel is a very basic local looking eating place. They are AWESOME - speak no english but really try to give you something yummy. PLUS for excellent prices. The hostel quoted us 12RMB for a plate of boiled rice with 2 fried eggs. At this place just next door we got it for 3.5 RMB each. The make a delicious green vegies stir fry..hmm just like the yum cha back home!
Be aware that if you are needing to go anywhere in the city between 5pm-8pm that this is rush hour. Getting a bus and taxi are near impossible. In fact we waited an hour for a taxi and we nearly didn't make it to our train ride to Xi'an. AUGH! We went there running, out of breath and crazy with worry with ALL our bags on our backs. We made it with just a moment to spare! Phew!
Ciao for now!