I stayed with a friend at Chillout Noosa. The owner Nic was really helpful and knew we were arriving late so arranged to be there to let us in.
The hostel is basically a nice house with 4 room to rent. There is a great lounge room and a fully equip kitchen for use. The house was very clean and there were two bathrooms and a huge deck which was perfect for sitting in the early morning sun.
We were there during the Noosa triathlon and you could literally watch the race from the balcony.
The only drawback is the location as its about a 25 minute walk to the main strip and the beach. Which was fine during the day, but a little bit of a pain at night. However, for the cost of the room its fantastic value ($30 per person when we stayed). There is a small strip of cafes around the corner which is perfect for breakfast. There is also a good thai place down the road.
We are staying there again in June. Recommended hostel.