hi USM
I was in prague mid of last year.
I booked a hostel, but turned out to be a budget hotel. Nice place. I stayed in a single bed-ded room, with 3 rooms sharing a toilet. Cost was below 30Euros a night with breakfast. If you're interested, do drop me a PM or email. I will go dig out the information.

I didn't really find language a problem. The main places have pple who speak english.
Also, perhaps you may want to do day trips to Karlovy Vary and/or Kutna Hora. Karlovy Vary developed due to the underlying hot springs. Kutna Hora is a very small town, perhaps the most famous of it now are the items made of human bones. (the story behind, I shall leave it to you to google. Interesting background)