| Most people will probably be coming in on trains. There are two train stops, the Hauptbahnhof (in the Altstadt) and the Bahnhof Dresden Neustadt, across the Elbe. If you're staying in one of the hostels in the Neustadt you should definitely use the latter. The Neustadt station is within walking distance of almost all the accommmodations in the Neustadt.
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Dresden's network of buses and streetcars covers the whole city. It's a very convenient way of getting around. You can buy a single ride for 1,50 Euros or get an unlimited day pass for 4 Euros. You can get the tickets at dispensers at most major stops and on the cars themselves.
Getting around the Neustadt itself is pretty easy on foot; you won't have to make any other arrangements. And you can get between most of the major sights in the Altstadt on foot too. But if you're going to be staying in the Neustadt and sightseeing in the Altstadt, the train is the most convenient option. You can walk between the two, over the Elbe, but it is a little time consuming (30min).
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Dresden's city code is 0351.
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