I've traveled a couple of different ways around the world, and I don't think either is the cheapest way to get around. The cheapest is hitchhiking, which is fairly easy to do with other backpackers one meets in hostels, and other places. I'm not talking about standing on the highway with your thumb out. I had a van in OZ and had 12 different people travel with me at one point or another. They helped with fuel but that was the only costs.
Greyhound is a bus company while OZ Experience is a tour bus company. I've been on similar buses to the OZ Experience and I'm not that wild about them. While they do help backpackers meet other travelers, there is a tendency for people to stay on the bus with one particular guide. For many travelers it ends up being a bit of a tour. Also, the guides make money on signing the passengers up for activities at the destinations and I ended up having to listen to a lot of activities that I had no interest in. But it is a more social experience that Greyhound which simply provides transport.
In terms of hostels, relax, no worries. OZ has some decent places to stay, including the best hostel that I've ever been to, Cool Bananas, in the Town of 1770. You can either find a guide book or look online as to where you'd like to stay. I went for the cheaper ones generally, Coffee Palace in Melbourne and the Globe in Sydney were my type of bottom end hostels.
Hope this helps a bit.
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