I found this Hostel on http://www.booking.com/ as we needed a brief one night stay in Picton. Our ferry from Wellington got us into Picton at around 9.30pm on December 7th 2011 and by the time we got off the ferry and down to the accommodation (1.5km from the ferry terminal) it was around 10pm. We were greeted by one of the owners who showed us to our room, which was very basic. A long narrow room with 2 sets of bunks against one wall and hooks for hanging bags, coats etc on the other (see photo below).
They provided a fitted sheet, pillow and a pillow case and we used our own sleeping bags. The laundry facilities appeared good although we did not need to use them. The unisex showers worked well although you had to press the reset button every 5 or so minutes to keep the hot water running, not so much fun when trying to wash the shampoo out of my hair and considering the button was located outside the door.
Staff: Reasonably helpful and welcoming. They showed us around and explained how everything works.
Room: Very basic 4bed bunk dorm, $27 each per night, not much room luggage.
Location: Close to the Picton ferry terminal (roughly 1.5km). Located on 9 Auckland Street. Was a little noisy at night, being near the train station.
Breakfast: Not provided but adequate kitchen facilities.
Rating: 3 out of 5