NYC hostel.

I`m coming to New York in mid June for a week and am having a fairly difficult time scouting for accomodation on the net. It`s definitely not through lack of quantity, but there is a huge range of prices. Sometimes it seems location and features are the reason, sometimes it`s hard to see why.
One such place is Swiss 1291 at 337 West 55th St, which seems like a good location but is very cheap for a private room with a private bathroom.
Can anyone tell me what this hostel is like and if the neighbourhood is nice or not? I am pretty close to just booking the place, but may reconsider if the neghbourhood is run down or the hostel is bad.
Are there any other hostels or cheap hotels I could look at. My priorities are as such: * lively neighbourhood * decent rooms with either a private bathroom, or nice share bathrooms * close to subway or midtown * under $100 per night for 2 people
Thanks.

I know nothing about the hostel but the neighborhood is okay and it is in midtown.. Transportation is good. You might consider The Habitat located on East 57th Street. There is the AYH Hostel on the Upper west side that is well thought of. It is on W. 103rd St. Subway is a block away and it is a 15 minute subway ride to Times Square.

Queens. I want to be in a place where I can go back to my room to drop off bags or have a nap or a wash. It`s not difficult to find hotels under $100 a night. I have also stayed several times in the HI hostel on 103rd St. I don`t think they have any double rooms with private bath. I think the smallest rooms are quads. They have something called "family rooms", but I think they`re bigger than doubles. I have always stayed in the dorm, and used the shared bath, which was fine. They also have a kitchen, which can save you a bit of money on eating out. However, at busy times you won`t find much space in the fridge, and you may have to wash a plate before eating.

the official hostel on 103rd street. One would have a clean and safe place to stay, and access to a subway within a block or to a good bus line. New York is a tiring city, and from my own experiences visiting other large cities (I live in NYC), I find I like to return to my room and rest up before setting off again in the evening. That is not easy to do if one stays in New Jersey or Staten Island. Once you are out for the day, you are out unless you wish to spend up to an hour each way traveling to and from your hotel room. You will best experience New York City by staying in it. You can sightsee, return to your room, rest and freshen up and then sally forth again for another go at it.

analysis. I spend a lot of time in "The City" either on business or some cultural event or simply waking around enjoying what the writer O. Henry called, "Bhagdad on the Hudson" back when that metaphor evoked excitment and mystery. I`m 70 years old and Manhattan still is that for me every single time. Never fails.
I don`t mind my 20/30 minute commute to most of Manhattan but were I a tourist, I woud soon resent wasting an hour in each direction traveling to JC just to save a few bucks.

Thanks for the replies.
Since I have heard no bad "experiences" about the 1291 hostel, it`s still our number 1 option. If some of the people in the hostel are not tourists I really couldn`t care, because we would have a room with a private bath, TV and don`t plan on spending much time in a common area. I do worry about our stuff being stolen from the room, but is this really all that likely?
As for New Jersey or Queens, it seems a little removed from Manhatten for my liking. However, I`m willing to do a little bit of research, if it means I`ll get higher quality accomodation for the same money. Can anybody recommend nice budget hotels, which are close enough to Manhatten?