Luxembourg may be a tiny country, but it has rich culture and an interesting history. Luxembourg city is itself a Unesco World Heritage site and the hostel is located right in the Latin Quarter.
Local Language: In Luxembourg, the people speak their own sort of dialect - A mixture of German, French, and Dutch. Most people speak English however (or French/German/Dutch) and so you shouldn't have much trouble communicating.
Visa Requirements: Canadians are allowed in Luxembourg for 90 days without a visa.
Costs :Budget a good $80 per day you spend in Luxembourg.
I've been to Luxembourg a few times, and have traveled through it even more. Chance are if you're Traveling around the Low Countries and western Germany, you'll have to cross through it at some point.
Luxembourg is one of the smallest countries in Europe, and while it has many small quaint villages, Luxembourg City is the heart of this tiny country. Luxembourg City has one of the best preserved old town's in Europe, with city walls and a castle overlooking old Luxembourg nestled in a valley. The old town itself has been declared a UNESCO world heritage site.
If you get a chance, be sure to check out Luxembourg and the surrounding cities in Luxembourg. It'll be worth your while, and staying at the hostel in the old town can't be beat for location.
The main hostel in Luxembourg is located right in the Latin Quarter, the old town. You can take a bus direct from the train station, or walk all the way down the hill. Luxembourg also has several hotels, though they of course can get expensive. You may want to make reservations in the high season.