Hostal Moneda, Mexico City

Address: Moneda 8, Centro, DF.
This hostel is right by the main square (Zocalo) so a convenient base for wandering around the city. Most hostals in the city are quite expensive. We got a private room with bathroom here for $30 a night, pretty steep but it was a nice room and breakfast was included. Breakfast is served buffet style on the roof terrace and they didn't seem to mind us going up three times each and stuffing our faces so we did get our moneys worth. They've got a nice little outside hammock area here and the roof restaurant is open for food and drinks until late. Oh, and internet here is free.
I've also stayed at the Hostal Catedral close by and their prices and facilities are pretty much the same. Both good places to go, both have dorm beds.

Magic Hostal, Oaxaca

Rooms here were pretty small but there was plenty of space outside the rooms in a covered courtyard. There's a nice bar, internet, cheap purified water, kitchen and a tv with movie rental and lots of sofas. A private room with shared bathroom was $14. A good place to meet people. Dorm beds available.

Hotel Mayflower, Puerto Escondido

We lucked out here by getting a huge room meant for 3/4 people at a low season rate because we turned up late in the day and its all they had. Saying that it was $25 but it was a huge white tiled room with a little balcony and a nice bathroom, our first luxury! There are dorms here, I think about $6 a bed. Bar and kitchen facilities too.

Bungalows Villas Marinero, Puerto Escondido

Okay. This is an important one because it's not in the guide books and it should be. There's loads of nice bungalows on this complex that are too expensive but at the back there are 4 great 'rustic' ones. They have a double bed and bathroom and little kitchens with table and chairs and places to hang your hammock. There's a pool right by the beach and beach chairs out by the sea. A bungalow is $19 a night but you can get it a little cheaper if you stay around for a while. And I definately recommend staying around for a while.

Posada Santiago, San Cristobal

$12 a night here, again we did good getting the best room - right at the front with the balcony. There wasn't much competition for it, I think we were the only people staying there, it's another place not mentioned in the LP. Good location near to the centre and when they're doing laundry you can sneak up to the roof for a good view!

Magarita & Eds, El Panchan

Get the cosina rooms! There are two rooms with a kitchen for $16 here. You can't use the kitchen unless you stay for a week but the rooms are super nice and so they are worth having anyway. There are two other rooms in the house without kitchens, didn't see them but I'm sure they are just as nice. We poked our head in the cabanas here, they are $15 and more dark and musty, though they are still nicer than . . .

Rakshita, El Panchan

Dark cabin with a sort of outside loo. Good for truly feeling like you're in the jungle when you go out to pee at 4am. Bad for mosquito bites on your butt cheeks. $15 a cabin here I think. Behind it there's an amazing veggie restaurant with ruling tofu burgers and tacos served by a mexican she-man that looks like elvis.