This was the second hostel I stayed in my life. It was a great experience. The view of our room was beautiful and relaxing.
The room was very broad and clean. The heating was not so good, and I got a bit cold there (in February, winter time in Portugal). The doorknob of my room was loose but it still locked alright. The bathroom was also wide and clean.
The hostel has a good kitchen, which I only used to store stuff in the refrigerator, but seemed like a good facility. If you want to cook, there is a grocery store just across the street.
The breakfast was ok, just the basic. And the lunch (I had Bolinho de bacalhau com salada de feijão Frade) was tasty and good cost-benefit.
The hostel is a bit far from downtown but you can get around by bus. The Douro river is very close to the hostel, just as its estuary to the Atlantic Ocean. That makes a great landscape, and we had a great time walking around there, seeing the water and the birds and feeling the calm breeze.

I must agree there was some nazi graffiti on the side of the driveway, but that was the extent of it. I can't say I had any in my room. It's a short walk to the river's edge and it's a good 30 min walk to the Contemporary Art museum, if you're into walking (otherwise there's a bus directly outside)...some people may say the location is inconvinient, but once you find your way around and know which bus to catch (207 from memory), you will be hopping along into Porto every night you're there. The place itself isn't too bad, the breakfast is good (if you're into cheese and ham rolls) and there are vending machines too if you don't want to try out your Portuguese...but why would you want to do that!

The location of the hostel is perfect if one seeks to spend the days near the water. Nice promenade along the river. Cheap supermarket across the street. Beach was "under construction" in June and by the looks of it it may well be for a few more weeks...
The best part of this hostel is definitely the kitchen terrace which offers a fantastic view over the river - never been in a hostel with a better view I guess. Equipment of the kitchen unfortunately is very rudimentary. The breakfast is pretty good, only it is not served before 8.30 am. The journey from the hostel to the international airport (bus 504/ underground) takes no more than one hour.

The youth hostel (pousada de juventude) is, as the other reviews say, quite far from the centre of Porto, but there is a regular bus link from right outside the hostel and taxis were also very cheap to get home at night.
I stayed here for 2 nights in a private twin-bed room, which had a balcony and a beautiful view of the mouth of the River Douro. The room was comfortable, and looked like it had recently been refurbished. It was all very clean, as was the ensuite bathroom. I stayed in a few youth hostels in Portugal, and this was one of the best - it's modern, and our room was quite stylish in a minimalist way.
Despite the distance from town, it was still good value and much better than another Porto hostel I stayed in in terms of cleanliness, facilities, noise etc.
I would recommend this hostel, but be aware it isn't in the centre!