Not sure what your budget is exactly, but I've also stayed at the Pensao Residencial Roma and would recommend it: prontohotel.com/prt/lisbon/p.... The location was great and the room was just what I needed.
I think Graça is the most fantastic neighborhood in Lisbon. If you want to stay in a great hostel, try the Johnies Place, just in front of the beautiful Miradouro da Graça. A good location, close to good grocery stores, a tram, metro and bus stop, and within the downtown area so you can walk everywhere.
It is a very clean hostel, in a beautiful 16th century palace, with some difrente type rooms, private suite, 4 persons, 6 persons with or without wc, big living room, big kitchen, and excellent common areas. The owner is very friendly and can give you always the best directions and special tips about the city.
They have breakfast, all day coffee and tea, wireless internet connection and computers. Sometimes they include a special cake in their free breakfast :)
Probably the best hostel in Lisbon ;)
Linda, Lisbon has loads of budget accommodations - B&B's or as they're referred to there as Pensao, Residencias and inexpensive little hotels. The choices are endless even within the old city alone which if I were you the best part of Lisbon to base yourself in making the main sights and far more interesting neighborhoods within your reach especially if you want to explore them on foot. They're the most reasonable in so far as budget places to stay in at but bear in mind that Lisbon is a superbly hilly city and your easy access to public transport i.e. metro, trams and buses depend greatly on how and where your hotel is situated at. And you also have to keep in mind the overall cautionary safety factor which we as travellers can never take for granted especially during evening hours. Tho, Lisbon, let me assure you is a city generally safe (compared to other European cities of her size) with mostly just the problem of pickpocket which one may by unfortunate circumstance encounter in public buses and trams (be on the lookout especially when riding the old 1920's trams!). That said, you can greatly minimize any chance of petty crime occurring by choosing a central, well-populated and well-lit neighborhood.
On VT itself, there are so many hotel listings in Lisbon of all categories experienced and also patronized by co-members you browsed thru and compare,.
Pensão Flor looks good to me :)
Linda, if you're looking to save money, you'll be better off going directly yourself to the hotel of your choice and make the booking. You'd save money especially if you're staying at the same pensao/hotel for say, 4 days or more. But you need to haggle for this. Savings you won't obtain by going thru a middle man. Also, I'd avoid accommodation that are so-named 'Quinta' which almost always designate for a high-end establishment. They're great quality inn for sure and superbly worth the experience but clearly not in terms of saving money. On the other hand, if you want to splurge, here's your chance!