Taiwan Hostels?

Has anyone ever stayed in hostels in Taiwan? I'm thinking about going there for a couple of months this spring, along with the Guangzhou area and Hong Kong.

I just read that it's possible to travel in Taiwan for 500 Taiwan dollars per day, which is about $15.40 USD. I'm sure that I would spend more than that, but it seems like a relatively inexpensive destination, especially with the dollar being so weak.

Update: it looks like I may be leaving for China in December and will be based in Asia for the winter.

I haven't traveled in Asia before. Does anyone have any recommendations?

Probable destinations are China, Hong Kong, Taiwan, Japan... and maybe SE Asia. An unfortunate limitation on this trip is that I can't venture far from a reliable Internet connection because of my work.