The Flamingo hostel in Kraków was voted the world’s best hostel in the 2007 “Hoscars” ceremony, held last month in Dublin. I’m not sure I could deal with the pink Flamingo décor myself, but if you want to visit the most obvious 1st-stop tourist attraction Poland has to offer and you don’t want to spend more than 90PLN per night then this may just be the place for you. Bring another nine people to share the room with you and you can nearly halve that cost!
I’m particularly fascinated by “We recommend” in the “Krakow” section of their website, which is a blank page. Lots left to discover then! :)
You can find details of the rest of the top ten world hostels in this Guardian article.