if you need it, check out the hihostel website. the rate should be in the range of EUR 10 - 13. Thats what it was when I was there. The location of the place might not be idyllic, but the hostel was done up great. Very clean and comfortable. The breakfast was too basic. The staff was absolutely wonderful. I'd go back to Croatia just for the people!
One of the guys who minded the desk there was super helpful and suggested a great itinerary for me for the day. I owe him a very special day!
Another hostel I'd recommend is the one in Pula. It wasn't as new as the one in Zadar, but the setting could not be beaten! Anyone would love it. I remember it was at the Valvaline Bay, a little away from the city centre.
If you go to either of the palces, could you please find out the names of the staff for me? Thanks!
Oh! And they all speak English! and the link put up there is just right :)