Located in a lovely wooded area just north of the city centre, this hostel provides a clean safe place to rest for the night. Admittedly there is not much going on around the hostel itself, but town is only a short bus ride away (get the #1, 6, or 9). Alternatively, you can walk the few hundred metres to the sea and rent a bike for 20 krone (about two GBP), cycle into town in 10 minutes, and then drop the bike off there rather like a supermarket trolley. Genius idea fairly unique to Scandinavia.
The hostel itself is clean with excellent washing facilities. Rooms may be small, but are bright and only hold a handful of people. The kitchen is well stocked, there is a pool table and TV room, and plenty of outdoor spaces if the weather is good. Some covered outdoor seating is provided in front of the old house if you really must eat al fresco whatever the weather.
Don't come to this hostel for the banter; it is generally filled with families of older people with their children, and this is reflected in the conservative atmosphere in the social areas. The setting in the wood is very peaceful though, and Aarhus itself is a buzzing shopping haven with a young fun nightlife.