The wooden house is alright at best. Certainly not worth the $40 per night, but luang prabang is an expensive place and we stayed at a worse place for the same price on our first night. Positives: the location really is excellent. Just a street away from the river on one side and the main street on the other. Easy walking distance to the night market and many nice restaurants. The rooms are very clean and quite large for a guesthouse. The shower had the best pressure of any other shower I've had in SE Asia. I was very sad to leave it behind!
Negatives: the walls are very thin. We could hear the man next door to us snoring at night and you can hear other people going to the toilet. Not ideal. As mentioned in previous reviews the rooster behind the guesthouse really is horrendous. It is like the lead rooster, as in the one that starts first and all the other roosters in the area follow. The noise started at 4am on the dot every morning. I know it's common on laos, but it is quite disruptive. The breakfast that is included is very ordinary just a microwaved baguette (when there are bakeries selling fresh every two or three buildings!) and and apple. The staff are not very attentive. The manager is ok, but he wasn't there very often and the other staff spoke hardly any English. This made organizing day trips and transport rather difficult.
All that being said it was still far better than the place we stayed on our first night (villa merry 3) and seemed full the whole time we stayed there.