Darren - I've stayed at several hostels in Europe and NYC. They are usually downtown, in an ok area, close to public transportation, and a great place to meet other travels on RTW wanderings. Many of the hostels will take reservations. Cost is usually in the $20 range for a bunk in a dorm room. Check out www.hiayh.org for more info. Some of my best travel stories come from hanging out with people I've met at hostels.