Has anyone ever stayed at the Picadilly Backpackers Hostel? Whats the number one thing to do while in London for a day? The eye? Madame Trusseaus? Something cheap??

What are you interests?
London offers so much to see and do - if you are more specific with your interests, you will no doubt get some good recommendations.

The British Museum is fantastic and free to enter. Particularly helpful if it is raining when you are in London. website

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<hr>Madame Trusseaus?<hr></blockquote>
Madame Tussards - but it's probably at number 999998 in things to do in London

You can't visit london without going to the Tate Modern Museum ... A wonderful place for everyone like modern art (Free, like others museum in london)
I think you have to go also to the Camden Market, an incredible market as a labyrinth in old warehouses in the north of the city (Also free if you succeed to buy nothing).
Have a good trip,
Mathieu.