Apparently, Bombay is one of the most expensive cities when it come to accomodation, so don't "freak" if you have a hard time finding a room anywhere for less than 1000 Ru's/$20.
I have a hard time believing I have to pay 20 dollars in India. Have you got a lonely planet? The internet is the worst place in the world to search for prices. I use that hostel page of mine only to find a hotel in very difficult cities and only for the first night.
Finding rooms and information on places to go on the internet is normally a waste of time. The best places do not need to do well and the worst places spend all their time trying to convince you that you should go there and pay too much. I am going to India because it is cheap. I have had way too many people that hate India because it is so absolutely dirty.
If I have too look for a room constantly in India or get a reservation then I could stay in Europe. It is a constant headache in Europe looking for a room. I do not want that type of headache. It is misery not travel. I think you need to get off the internet and into a guidebook.