Hi!!!
I'd like to suggest a little gem...
The Yangshuo Culture House
http://www.yangshuo-study-travel.com/It's just a really amazing place...a little family run hostel... it's like a homestay...
I was there last summer. For about 11$ a night, I got a great private room with A/C and bathroom, 3 homecooked meals a day (If you want them, but thrust me, dinner is amazing...

see picture...) cultural lessons of your choice, and a lot of help in organizing activities (Wei, the owner is super nice, helpful and not "pushy").
The place is now in the Lonely Planet and you really need to make a reservation if you're planning to go there.
Seriously, I very strongly recommend it if you plan on going to the area...
Even Wei's family is great! The wife and the grandmother let my friend and I go to the market with them: 6am, absolutely no tourists... It was great!! And they let us help in the kitchen and taught us a few things...
Also Yangshuo is a great place where you can do all kinds of "outdoorsy" activies.
Here are a few of my pictures if you're interested:
http://picasaweb.google.ca/travelclown/MonVoyageYangshuo and its surroundings start at the one where you see me making dumplings (at the Culture House) up till my panda pictures (in Chengdu).
You should have a wonderful time in China... Happy travels!!!
