Jolly Swagman 

On my first trip to Australia in 2005 I picked this hostel at random. The staff are friendly and will bend over backwards to help you. I went back 3 times in my 6 month trip. When I went back in March 2007 the staff remembered who I was (not sure if this is a good thing) and am arriving again in early July 2007. I will be checking into the Swagman again. It is a safe, clean and happy environment. Lots to do in the near locality, plenty of great deals at the local watering holes. An overall happy experience. Don't worry if you're travelling alone because after one night here you won't feel alone.