Bob's is a basic affair, but it's cheap and it's good fun — and it's central enough that all the essentials are an easy walking-distance nearby. The most memorable thing about Bob's is the "dungeon" entrance / reception / lounge area: it's a glorified weed den. People sit down here and smoke weed, literally for days on end — with the result that the room is presided over by a permanent smoky haze. The rooms are pretty squashy, and the bathrooms are a bit seedy: but breakfast is included, the staff are very laid-back, and the fellow guests (when not stoned to the point of being comatose) are a friendly enough bunch.
Rooms: a little cramped, and the floors are old and creaky — but they do the job, and the individual lockers inside are very secure.
People: mainly stoned. The stoned ones will always greet you with a smile, and are always welcoming you to sit and smoke with them; but they're unlikely to be willing (or capable?) to go out and do much. Not everyone's stoned — the others are great folks too.
Staff: friendly and accommodating, as well as available 24/7.
Location: a little away from the red light district (unlike some other hostels), but still easy walking distance from that famous street, as well as from the train station and all the major sights.
Food: basic (and not buffet) breakfast of toast and coffee — not very impressive, but at least it's free.
Internet: 2 PCs available for €2/hr, which is pretty standard for Amsterdam.
Hot water: didn't venture into the showers to try it.