Not sure what their budget/level of luxury is, but I stay in this boutique hostel on Khao San Road: http://goasia.about.com/od/wheretostay/fr/Khao-San-Road-Hostel-Charoendee.htm
Friendly staff, clean place, free Wi-Fi, free breakfast, and it's in the middle of the main drag; however, it's set off of the street quite far down a small walkway, so not as loud as other places. Only caveat is that they have shared bathrooms only.
What's their ETA? I'll be there from Apr 27th - May 4th in that place listed above if they want to ask for me.
And my Thailand tips site will come in use to them: http://www.thailandtips.info
Hope this helps,