Recommended! Die Fabrik Hostel, it is right in the heart of the Kreuzberg district (and, to be honest, where real Berliner life continues away from the hellish maw of global tourism!)
Those looking for a hotel-style accommodation with hostel prices, this is the one. Been going there since 1998 and makes part of why Berlin is so special to me! Has nice big rooms and cosy art deco style. So good, even real Germans stay there. Also has very nice and comfortable cafe adjoining it.
At Schlesische Str. 18, Kreuzberg. Nearest U-Bahn Schlesiche Tor
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The train on to town was a stones' throw away with bars and loads of well priced places to eat as well. If you can find the steak pasta near the station I recommend it.
The rooms between three of us were pretty spacious and clean (despite our mess), the shared toilets were always spotless. The building was really cool with a sense of history, no TVs or phones in the rooms but who cares?
The cafe was fine for coffees and that but plenty of places around for lunch and all that jazz.
Plenty of room in the courtyard to park your bike too. I will definitely return.