Stardust guesthouse and cafe is yet again on Chulia Street as are most of the low end places, has a dorm room at 7 ringgit per night, and also some other rooms starting at 25 ringgit per night, probably a bit noisey as it is right on the main road but maybe if you got one of the aircon rooms that would drown out the noise.
Penang Visa Run Page 
The restaurant does your normal cheap western food and is not too bad,
I just don't understand what went wrong with my beans on toast though, the beans were all mushed up, mushy beans?
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