If you want the European hostel experience you've always dreamed of, look no further! Hostel Elf is excellent: friendly and comfortable. The staff is accommodating, and they have nightly events for guests like 1/2 off beers, BBQ, movies, etc. to bring in more of a sense of community.
As an introvert, it is sometimes hard for me to talk to new people, but I found myself shooting the breeze with fellow travelers within an hour of my arrival. I've met some really cool people here, with some of whom I have traveled the city.
Also- the beds are fantastic. A+.
It's about a 30-minute walk from Old Town, 5-minute walk from the bus station, which isn't bad at all. There's also a bus station directly in front of the hostel, so that's also an option.