Kind and helpful staff, fun bar with decent specials for hostel guests. As this was my first time in a hostel, I'm not sure I could compare it to anything, but it seemed mostly clean. Bathrooms could use a little more love, but that's what flip flops (thongs) are for. There is a team of hostel guests that does most of the cleaning for free accommodation, so you can't expect 5-star cleanliness from people who don't care/are only doing it for the free stay.
The area isn't bad - just a block or so away from a Coles grocery store, and Acland street which is full of shops, cafes, banks, and bars. And just past that is the ocean. About a 15 minute walk to St Kilda pier, where, if you're lucky, you can see penguins at night :)