Sogndal Vandrerhjem is not very visible from the road, but there is a good sign on the road and it's easy to find. This hostel has lovely surroundings of fields and trees, and is very near the fjord. It's within walking distance of the bus station along the town's only main road (Helgheimsvegen).
This hostel is warm and welcoming, with a lot of space. There is a volleyball net outdoors, and a comfortable common room indoors with adjoining deck. The common room has a good selection of games, and a TV. Folks seemed to make themselves at home.
This hostel also has a pay washing facility (get a key at the reception). The washing room is a little messy but it works. The guest kitchen is the best we've even seen, with many cooking "stations", each with hotplates and plenty of counter space. There were also fridges, microwaves, and coffee makers. The kitchen may get crowded, but it accomodates many people well.
The bedroom is a very nice and clean, with a big window and lovely view. There is a small sitting room on each floor. The room also has a nice desk area. Each floor shares one bathroom with a shower. This was unfortunate since using the toilet or using the shower meant no one else could use the other at the same time. The bathroom is also very small and there is no place to hang the clothes or toilet bag.
Breakfast can be purchased for an extra 60 kr. Beware -- if the hostel is full, you'll experience a madhouse at breakfast. This includes food running out in minutes, no cheese slicer, drinks gone, no seating... People took more food than they needed because they saw it dissapearing and then the cycle got out of control.
From the hostel, the tourist center is only a block or two into town. While in the area, take the glacier bus to Jostedal / Nigardsbreen. There are daily walking tours on this beautiful glacier (including special tours for families with younger children), and this is by far the best thing to do while staying in Norway.
Overall, this hostel is highly recommended. The price is excellen and it's well worth the stay.