In May 2014, I stayed at the Ostello 5 Terre in Manarola. I think that it is described well in RS Italy. It is a typical European hostel. There was a wide-variety of ages represented among the guests. I was warmly welcomed and the check in process was quick and easy. I stayed in an all-female, 6 bed dorm. The dorm room was clean and large with plenty of room. There were great, large lockers to use to store belongings (bring your own lock). I never hesitated to leave my belongings in the room while I was gone. The hostel was quiet and has a great patio out front. While the location is at the top of a very long, steep hill, I saw this as permission to eat all I wanted! Just take it slow. and you'll be fine. :) Another benefit to the location is the proximity to Trattoria dal Billy - my new favorite Manarola restaurant. And well within my budget due to the savings from staying in the hostel.
My only complaint is the cleanliness of the bathroom. In the women's bathroom on the 2nd floor, only one of the two showers worked and was not my idea of clean. I strongly recommend shower shoes (and bring your own towel, as those are not included in the cost of the stay).