I have a lot of family in Eastern Europe - Romania, Bulgaria and Moldova. I visit every year, and as a college student I have to be cheap - and that's not hard in Eastern Europe. Since Romania and Bulgaria have joined the EU in 2007certain products have risen in price, but it's still much cheaper than Western Europe. I've also heard that Poland is cheap, as well, though I haven't been in many years.
As for hotels, even in Moldova, they are much more expensive than hostels - they can sometimes be more difficult to find, too. I would say rather than paying an average of $20 a night, you'll be paying between $40 and $50 instead. This is still cheap compared to the States (and especially compared to Western Europe - I cannot believe the hotel prices there, it's insane), but it's up to the individual traveler on how much they prefer to pay. If you're a student, try studentuniverse.com - they have cheap deals in both hotels and hostels. If you are not a student, check out statravel.com - it sometimes has very good non-student deals in Europe.
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