Just got back from a tour of Thailand and this was the best hostel we stayed in. It calls itself a 'boutique hostel' but it's far cheaper than what Europe charges for a boutique bed - around €9 a night!
There are seven rooms so it's got a real homely atmosphere, and the 100-year-old building is beautiful. Our room was tastefully furnished and there was a peaceful zen-like roof garden.
The staff should get a special mention - the smiliest and friendliest girls I've ever met! It's also a short walk from the center of town. All in all, ideal for backpackers in Bangkok!
204-206 Maha Chai Road, Samranrach Phra-Nakorn, Bangkok, Thailand 10200
www.hostelbookers.com/hostels/thailand/bangkok/39764/