http://www.elnumero8.com
La Casa de Rafa no. 8 is a wonderful hostel in the Albaicín, about five minutes walk from the town centre. It has furnished apartments with bath and cooking facilities and beautiful terraces with views of the Alhambra. Run by an American English and Spanish is spoken. Highly recommended. I recently put up all my friends there when we had a big party and they loved it.
http://www.carmencuevas.com
Carmen las Cuevas is a school specialising in flamenco and teaching Spanish. Set in the beautifiul Albaicín it has been running for 20 years and has a well deserved reputation.