Price: 300 ($6) syrian pounds for dormitory.
Cheap hostel near the clock tower where most of the cheap hotels/hostels are located. Short walk to the citadel, souqs, the jewish quarter and the modern part where you can find some hot girls.
Bed is comfortable enough but the sink in the room and the bathroom is not very clean. The place is quite dark. TV and a rooftop terrace on the top floor. Not bad considering the price.
Very friendly staff who speaks a little english. For more important inqueries you can go to the Sheraton which is just outside. According to wikitravel they also have a nice breakfast for 600 syrian pounds if you want something else than naan and cheese. For breakfast I can recommend a cafe in the main square in the jewish quarter. For 100 syrian pounds you get jam, ham, cheese, olives, chocolate spread with naan.