I stayed in a private room on the ground floor (the only one with a private bath). At first glance everything looked fine, but after a closer look, the bathroom needs a good scrubbing - there was mold or mildew growing on the tub walls (the tiles and grout are both grey and the mildew/mold is a darker grey that wasn't immediately obvious). I could hear every step in the room above me, so I ended up moving to one of the private rooms on the second floor that shares the bathroom (where there was also some mold/mildew). As others have said, this hostel does have a lot of rules, although they did refund me the difference in price after I moved to the less expensive room, although the rules say no refunds so YMMV.
The hostel is on the edge of town, so the only thing right by the hostel is the Gas Cafe (gas station/convenience store/fast food). But Crested Butte isn't that big of a town so it is easy enough to walk to the center of town. The hostel is near the road that connects Crested Butte to Gunnison and Mt. Crested Butte (the ski resort) - traffic noise wasn't usually an issue although I was woken up one night by a truck going by. The main noise issue was from people who didn't heed the signs to not slam the doors.
Apparently there is bakery that operates out of the back of the hostel, so sometimes you could smell stuff being baked, which is a good thing or a bad thing based on your perspective. They would have a few baked goods for sale sometimes in the afternoon.
The kitchen and living room are nice sized - I was there Fall 2007 so that was not a peak time so I don't know how busy/crowded the kitchen could be during busier times.
There is a laundry on premises - wash was a $1.75, I think the dryers were 25 cents/5 minutes and the soap was $1. There is a computer available but there is a charge. I don't know what it costs - the library is near the hostel and has free internet service. You don't have to belong to the library but there is a maximum time limit of 30 minutes.
