The Qomolangma Hotel is inexpensive (rates range from $40 - $ /night). It is less than a 10 minute walk to the Drum Tower and a 15 minute walk to a shopping center (groceries!) and Lotus Lane. (For you Americans that need your coffee and fast food: there is a Starbucks by the lake and a McDonald's by the Drum Tower. But try not to give in! Try sticking to steamy bread and flower tea!) :-)

The hotel is clean and staff are very friendly. Broadband internet works well here. If you want to feel like you live in a non-English speaking area, this is the place. It's great. www.qomolangmahotel.com.

I also stayed for one night in the Beijing Grande Hotel - very nice as well and 10 minutes from the Forbidden City.

Have seen where The Backpackers hotel is - very cool. In an alley/sidestreet but caters to foreign travelers. No problems going into restaurants if you don't know Chinese.

Cheers!

Don't know about the guys - but ladies don't be surprised when you go into a WC and stall doors are open while "business" is being conducted. If you're not comfortable with that yet, don't be afraid to wait for one that has a door or go all the way to the end of the bathroom (by a fan is best). But most importantly . . . DO NOT EXPECT THERE TO BE TOILET PAPER! Thankfully I never go anywhere without tissues. Carry a travel pack of tissues (and hand sanitizer) with you. You'll never regret it!