I have stayed many times at the
I also stayed in Hostal Bearan at 25 Calle San Nicolas, right near the Plaza del Castillo. It was very clean, had a full bath in the room, the owners were very pleasant to deal with and we were quite happy. I seem to remember paying something like 43 Euros for two people per night. One small problem was our window faced the little street and the youth were partying almost until dawn and it was pretty loud.
Hostal Bearán, which is very close to the main square, on a pedestrian street, and right across the street from a very good, not fancy, reasonably priced restaurant, Basseri.
Hostal --
http://www.hostalbearan.es/ Rooms are 45-50 for a double. The prices have gone up a lot since I started staying there in 2000! Nancy´s recommendation is a lot cheaper, because singles here are 38!! But they do have private bath if that matters.
Restaurant --
http://www.restaurantebaserri.com/ (restaurant is at the very back of the bar area, I think their menús del día have a great price/quality ratio).