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Which district should I stay in while in San Francisco?


Travel Info
My partner and I will in SF in September. I have been looking at hostels and cheap B&Bs to stay in but am having trouble deciding which area to stay in. Places near Union Square have cheap hostels, but the locations sound a bit dodgy at night. There are some reasonably priced B&Bs over on the west side of city, near Golden Gate Park, but just wondering if we will be too isolated there? What is the neighbourhood like over there? Would really like to stay somewhere that we can walk around at night and go to local restaurants and live music venues.
Not too bothered about having to travel to get to the sights. Just want somewhere where we can soak up a bit of atmosphere and get breakfast included :)
PS. Want to spend less than $100/night.

Travel Tips
I love hostels for a variety of reasons no matter what my age. I'd highly recommend the Fort Mason hostel. While it is off Bay Street and you have to walk to and from it, you have the options of the Marina, Fishermans Wharf and North Beach (italian area). You can also get a bus (49 on Van Ness) right by it that goes to the Mission area or the FIllmore area (22). It is really ideal.

I'd also say the Green Tortoise in North Beach or the hostel in the Mission near 19th and Mission in/near the Medjool restaurant.

Others
if you want to soak in touristy atmosphere, i think that the wharf area is a great place. there's stuff to see/do at night and the eateries open early enough for breakfast.
if you have a bit more to spend, nob hill is really quaint and it's near chinatown where you can find good food.
There is a great B&B above the Castro District. I know the manager and he treats people right.

The price is about right and the area is nice.

The Belvedere House. You can search it and check it out.
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