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Going to Prague for 3 days next month and thought I'd see if anyone here had a good recommendation for a place to stay. I've just been looking on hostelworld and there are over 50 hostels so choosing 1 is a bit difficult.

Looking for:

- Walking distance from the sights
- Walking distance to the major drinking spots (probably more important than the sights biggrin.gif)
- Lively, fun hostel but not too much of a cesspit

Asking for too much?
Walking distance to the major drinking spots

Haha! You mean stumbling distance, dontcha?

Old Prague Hostel has some excellent reviews, especially for location.

Good luck bud!
Here's some reviews of the Czech Inn Hostel, which got lots of good reviews. I'm not sure how central it is though...
It may be a bit late for you, but The Elf is a great place. Maybe a 20 minute walk from the Old Town square, but right in the centre of one of the best nightlife districts (ie, not overpriced and more Czechs than tourists). Forget the name of the district, it's been a couple of years since I was there.
When I went, I stayed at the Marriott in Prague. I had enough points to stay for free, so I'm not sure if I could have afforded it on my own! It is VERY beautiful, comfortable, conveniently located across a wonderful shopping plaza, also by the train/trolley and a walking distance to all the sites. They also had Internet (perfect for travel blogging!)
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