Ugh 2000 rupees is 35 dollars and that is WAY too much for me. Do the rest of you agree that i need to pay that much in order to be in a safe locale?

I mean the guy who documented the cost of his Indian trip in great detail (which you can find by following Lifesuports's link above) spent $5 a day on accommodations. He was admittedly taking the cheapest possible route, which is not something that I intend to do, but do I really need to spend 6X the amount in order to be safe as a woman? If so I want to know the truth, don't get me wrong, but I really hope that this isn't so.
I am still curious about the details regarding hostels
That one is easy. There are about 3 hostels in India for foreign travelers, and they've all opened in the last year or so. The rest of them are for Indian students.
but I would prefer air conditioning when it's hot, heat when it's cold
"Super cheap" and wanting a/c and heaters negate each other. Settling for blankets and fans brings the price down.
I'm not sure about which hostels Pirate_At_50 is referring to, but as an Indian I know the hostels here aren't for foreigners. Most definitely not for solo female travellers. It isn't even a place we would stay, hostels are ok for students, migrant labourers etc.
Don't let me get you down, but there is a harsh reality about India you must understand. While the cast system is changing and no longer a major issue in large cities, the difference between classes still exists. Which means you cannot stay in a cheap hostel where truck drivers and labourers stay. It will be unsafe, and even the ones who aren't letching/ wanting to get fresh with you won't know how to handle your presence. There is a MASSIVE difference between being a male and a female in India. (Not if you're staying at a 3-7 star place, but in the budget range, Yes.)
I've just done a quick search on some local hotels, (for Varanasi and Kerala) and the cheapest hotel accommodation is Rs. 2000 upwards. And these wouldn't even be near the sights. Another option to try out is homestays and guest houses. There are lots of families willing to give you a room in their house, (with or without meals) and you're safe, as well as looked after. (We Indians tend to go overboard on the hospitality front) But even those are around 1000-1500 rupees.
I'm not sure about which hostels Pirate_At_50 is referring to, but as an Indian I know the hostels here aren't for foreigners.
There's one in Varanasi, one in Jaipur, and given they were on CNN, don't expect 50 paise rooms. I can't recall the names and don't care enough to go see them. As I said, both of those opened in the last year or so.
you can save INR by not eating Meat from Murdered Animals while traveling in India.
Generally speaking, meals that do not contain Meat from Murdered Animals will be cheaper than those that do......plus, you're helping to save the planet, will be improving your health and reducing the unnecessary murder of the beautiful animals with which we share the earth !!
and yes Pirate..... that means more for you :)

As a single woman traveling to India for the first time, I would advise you plan ahead and book a good travel plan that suites your tastes for at least the first week or two. That will ease your into your Indian experience and the travel company, if you choose a good one, will take care to only select good hotels/guides/drivers that they have a relationship with. That would make the whole experience safer for you.
And I do think that you get more out of a well planned holiday than one where you play by the ear.
I am travelling in India just now. On a cycling trip so moving almost every day to a new city/town. I don't book rooms ahead.
My 'normal budget' for a room is 1000 Rs per day. Only twice on this trip, 6 weeks so far, have I had to pay more than that. And I have had several good rooms for 6-700 Rs.
There are many hotels that you would not find at all on Internet.
This is my fourth bicycle trip in India. Several times have I found that the places where I get best value for money are the ones that are popular among backpacking travellers. Good guest houses in such places make their money by being full every night.