A friend of mine just stayed at Taian Hotel. It’s a pretty nice and affordable hotel in a good location. Less than 5 minutes walk to Guting MRT station on the corner Heping E. Rd and Jinshan S. Rd.
The rooms were smallish, but clean and comfortable. Western style bathroom w/bathtub, a small fridge, Cable T.V.
Also, the hotel is on a corner, so every room has a decent view. There’s no elevator though, so if you’re on the 4th or 5th floor, you’ve got to walk the stairs.
Only 1000NT per night. A great deal for central Taipei!
They don’t have a website, but here are their phone numbers:
Fax: (02) 2321-2191.