I am no longer staying at the Kathmandu Guest House. In an effort to save some money, I now reside at Hotel Northfield, about four buildings down from KTM Guest House. I have gone from spending $7.50 a night to $3 a night.
As far as wireless internet access is concerned in Kathmandu, I know of three hot spots, all within the Thamel area. At Java Coffee House, you can purchase internet access in hour increments for 30 rupees an hour. Kathmandu Guest House allows the purchase of one, three, and five-hour increments at a rate of 60 rupees per hour. New Orleans Café is where I find myself most frequently, due in large part to their free wireless internet access during the day.