We stayed here for 5 days in June 2011. The location is the best you will get in Yangshuo; right in the middle of the centre but in a quiet street, across the big pond with an excellent view on the typical Karst-hills (if you think away the McDonalds sign).
The family is very friendly and speaks good english. It has a B&B feeling over it since the family also lives here. The food in the restaurant was good value for money, although we mostly snooped around in the neighbourhood.
The room was good value for money. I would recommend the balcony room; the balcony is very spacious and offers amazing views. The room itself was very basic and can use an update. The bathroom had a western style toilet but was simple.