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Can anyone recommend a hotel in Barcelona (not too expensive)?

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Yip, the Hotel Oasis. Is at the cheap end of hotels for Barcelona, but its location is perfect. Just around the corner from the train station that connects to the airport. i.e from airport you catch the train to the end of the line, and then walk about 2-300m around the corner. Plus is on edge of old town, easy walk to Ramblas, and also the waterfront.
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Duc de la Victoria. Very central - just off Las Ramblas. Very good price and lovely inside! We went to Amsterdam then flew to Barcelona without booking any hotels and that was the one the Tourist Info at the airport booked us into. It was only about 50 Euro a night and was really nice and comfortable. It was in 2003 though so don't know how much the prices have risen. Check it out on trip advisor.
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Stayed in an apartment which had a kitchen and was 3 blocks from the beach. banys de mar is the name only about 80 euro a night. Really nice.
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