I have only been to Dublin and London, but plenty of good hostels, I stayed in one called City Hostel, really nice, had its own bar, and was in either East or West Kensington, close to the tube.
Check out canadian-affair.ca, which always has the cheapest flights, but also check out the YYC thread and ask Chris Myden as that guy is the god of deals.
Also I highly recommend going to a soccer game when your over there. Tickets can be hard to get as you have to be a registered fan of the club, but Fulham, who are in the premier league and a decent side have a neutral end where anyone can sit.
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