Great hostel! Really sweet hosts who care about you and the guests are really cool and friendly here. The kitchen has a really badass view of the Flinders Street Station which I stared at every morning while eating breakfast. Sometimes they have free tea/coffee and snacks when they have events. They have plenty of regularly scheduled things here, like the weekly free walking tour. You cannot bring alcohol here, but they will hold it for you during your stay and they do have a bar downstairs which serves good cocktails at affordable prices.
Sleeping is comfortable. I had a room with 12 people, but everyone is considerate and keep the room quiet if someone is sleeping. The only odd thing is hearing water rushing through the pipes on the ceiling. I'm hoping these pipes contain clean water and not waste water. haha.
The only cons: the dishes and wi-fi. Make sure you bring your own paper cups, dishes, and plastic silverware. I kept getting sick from the poorly washed dishes (the guests have to use rags to dry the dishes, but these rags are also used to wipe hands or countertops).
If you have a phone, be prepared to run up the data plan here. There is no wi-fi unless you are downstairs in the basement or in the bar. This is the most crappiest part about staying here.
Backpackers United is next to DeGraves alley. Basically in the hub of everything happening in the Melbourne CBD. I definitely recommend staying here. read more