Chelsea Center Hostel (%212-643-0214,
www.chelseacenterhostel.com, 313 W 29th St)
Small friendly but GREAT because it has a BETTER location in the East Village, which is where you want to be. You gotta go by the Chelsea location to get to the EV one.
I think you'd be fine around Jazz in the Park at night. I hear it's the best of the big ones.