We stayed here during SxSW '09. It's a pretty nice hostel. It has a big grassy area and docks leading up to a lake. It's quite pretty. There is also a private parking lot in front. There's a communal kitchen with free bread, which comes in handy for your drunk, late-night munchies, oh and breakfast.
There are some some smaller rooms for 4 or 6 people, but there is also a large dormitory room with many, many beds. Luckily, I was in a 6 person room, which was fine. They have lockers you should definitely use because my friends had an iphone charger and a sweatshirt stolen here. I think it's pretty safe if you just put away your stuff though. It's a hassle, but it's worth it.
The bathrooms are okay. There are numerous stalls and sinks, but the showers are in just a big room with curtains sort of stringed across. Definitely bring shower sandals, and try to lose your sense of modesty. To use the furtherest shower head, you actually have to cut across the showers which may possibly be in use....uhh, awkward! I think they should fix this!
The staff are super friendly. It's clean. There are "lockout" hours in the rooms so they can clean them, but they aren't too strict about it. The bathrooms close during this time too, which is awful! If you wake up too late, you might not get to shower (this happened to my friends).
There's also a nice communal living room with comfy couches and a few older computers. There is free wifi, so bring your laptop as computers are a commodity and usually in use. There is also the sweetest cat that lives here! You'll love the kitty, such a chiller.
My own main problem with the hostel is that it's kinda far away from downtown. There is a bus, but it takes about 15 minutes to walk to the bus stop and it doesn't come very often. It's about a 45 minute trip into downtown from leaving the hostel, but only if you know the bus schedule; otherwise might take considerably over an hour to get there.