I just posted a new article by James Esbester on getting work in hostels. Go check it out here:http://www.startbackpacking.com/hostel-work.html
I crossed paths with James in Chengdu, China last Fall. (yes, home of the recent earthquake).
He was working at our great guesthouse, which was really laid back, relaxed, and the staff were very friendly. I would catch him working on the computer, either English-checking their website or signs, and then getting a beer afterward. He agrees, the money isn't great, but then again, you don't work so much either. You do get free room and board (the food there was great) so it takes a huge strain off of your travel funds.
Something to keep in mind when you feel like setting up shop in one town for longer than usual!