jaydub:I didnt stay at a "budget" hotel while on ambergris but if I go to ambergris again I definitely will which will help free up more funds for even more diving. Click this link for info on almost all hotels on ambergris caye ---> http://www.ambergriscaye.com/pages/lodge/lodging.html
If you are looking for some place pretty cheap I think Pedro's backpackers inn looks pretty cheap. It looks kinda old and rotten from the outside but the inside pictures dont look too bad, pool table, bar, free internet access, pool, 24hr security, BBQ, tv's. I havent stayed there so I cant give an accurate description of the place.
Pedro's is less than 2 years old and I've never before heard of it being described as looking "old and rotten". Pedro himself, yes, but not the building. The building has 2 pool tables, table football, several TVs showing sports, free internet (I'm using it now) and as of last week a restaurant run by a very good chef. It is fast becoming THE place to eat.