Travellers Guest House (TGH)

Aside from one distinctly disinterested staff member, it's a pretty good hostel. The rooms are plenty spacious. Some hostels would have crammed 8 beds into my 3-bed dorm. Big common room, and a generally solid group of travellers, though the group travellers are annoying (why are groups invariably anti-social with the rest of the hostellers). In theory you can buy train tickets when I tried they couldn't be bothered. The Internet doesn't work. Still, get past the fact that it's not quite everything it bills itself to be, and you've got a pretty good hostel.

A good 20-minute walk from Prospekt Mira but Prospekt Mira is only two or three stops away from the very heart of central Moscow.

I stayed in a dorm (a room with three other guys) and it was fine. Accommodation is basic and food is dire compared to Western standards, but hey, this is Russia and its not that expensive to stay. There is limited internet access.

There is an extremely well-stocked supermarket about 15 minutes walk from the hostel.

Unique Quality: The people staying at the hostel were and are some of the most interesting and friendly people I have ever met. Friendships were made quickly and people usually went around together sightseeing for company and for sociability.

Staying at a hostel (I'd never done that before) opened my eyes to an eclectic mix of people from all over the world. I definitely recommend staying here for that aspect if one concedes that creature comforts and privacy will be sacrificed temporarily.

Directions: 20 minute walk from Prospeckt Mira metro station.

Indeed the most budget accommodation in Moscow.
Not that luxury but you can easily spend a couple of nights there without any problem.
Rooms for 2-6 ppl, each room has a bath tub and toilet.

Unique Quality: The only "western" type of hostel in Moscow. Staff speaks English, they have internet access, breakfasts are included in the room price.
Though rooms look a bit shabby as well as hostel itself.
TGH occupies just one floor in a building, which represents a low class hotel.

Directions: Quite central location, 7 min off the main road, between metro stops Rizhskaya and Prospekt Mira.