cheap places to stay in noosa, fraser island+between the2!

Rainbow Beach Hostels

there are half a dozen hostels in the Noosa area - noosa junction, noosaville etc - google them

i've heard not so good reports about the koala backpackers at noosa junction, but the YHA is meant to be OK

then there's a hostel on the north shore called north shore backpackers or something

and as mentioned above there's frasers on rainbow beach.

there are also quite a few campgrounds/caravan parks though these often end up being more expensive unless you are a family.

And <a target=new class=ftalternatingbarlinklarge href="http://www.yha.com.au/hostels/details.cfm?hostelid=54">Halse Lodge YHA Noosa</a>. There isn't a lot between Noosa and Fraser Island, other than Rainbow Beach and Tin Can Bay as per #1. The main gateway to Fraser Island is Hervey Bay. So <a target=new class=ftalternatingbarlinklarge href="http://www.hostelz.com/hostels/Australia/Queensland/Hervey-Bay">Hervey Bay Hostels</a>. Staying on the island itself involves either camping as part of a 4WD tour, or staying in relatively expensive resort accommodation.

Can't get that link to work, Chris.
Rainbow beach is very handy to the ferry crossing for Fraser, can't remember the name of the hostel we stayed at, it was just down from the shops, away from the seafront. There was at least one other in a good spot a bit closer to the sea. When we crossed over to Fraser for the day, the ferry waited for a few 4WD's that had come up from Noosa along the coloured sands - spoke to some people on a paid tour who said it was a bugger of a trip, quite cramped. We'd come up via the highway (not having 4WD) and wondered how much better/faster driving up the sand would be.
The hostel on Noosa North Shore is really out of the way in my opinion. Nice wildlife but bugger all there apart from the pub. It's a good way from downtown Noosa, maybe not as the crow flies, but unless you have a boat, you need to catch the car ferry and drive about 15 minutes to get to Hastings St. Halse Lodge is pretty old and daggy, but very popular, its location is absolutely brilliant. Just down from the pub, 50 metres from the main street, 100metres from the beach, and a reasonable walk round to the National Park.
There's also a backpackers in Noosaville about 150 meters from the river front that has a courtesy bus down town and seemed to have lots of people milling about every time I drove past in Feb.

Try Bug Hostels Qld

Dingoes

Fraser's on Rainbow Beach

Pippies Beachhouse

Rainbow Beach Backpackers

Fraser's on Rainbow, that's the one. We got a double room, quite good, pool and bar/Tv area were good too. They sorted our tour to Fraser Island. We also went to Tin Can Bay to "feed the dolphins" - bit of a farce that.