This place is in an excellent location, very close to the main train station, from where you can easily get to all the sights.
It seems to be a wife-husband team that runs this place, with the wife taking on most of the burden. She's friendly enough and speaks passable English if you need it. It has everything you need, including 15 minutes of free Internet access. She also gave me a glass of plum wine the one evening I was there.
On the down side, this seems to be a very well worn-in hostel and isn't as clean as others I've stayed in - not for want of cleaning, but just because it's all been used so many times. The mattresses in the room I was staying in were all sagging pretty severely in the middle, although that didn't make it terribly uncomfortable.
There isn't a lot of nightlife in Nagasaki, but you should bear in mind the 11pm curfew, which the landlady is very strict about. And it's not just a door-locking curfew - you're supposed to go to bed at...
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